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Accounting Policies of Wellesley Corporation Ltd. Company

Mar 31, 2015

I. BASIS OF PREPARATION

The financial statements of Wellesley Corporation Limited have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention unless otherwise stated and on the basis of the principle of accrual. GAAP comprises accounting standards as prescribed under section 133 of Companies Act 2013(‘Act') read with rule 7 of the Companies (Accounts) Rules, 2014. The company, generally, follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except those with significant uncertainties.

II. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates and assumptions and such differences, if arise, are recognized in the period in which the results are crystallized.

III CURRENT AND NON CURRENT CLASSIFICATION

All the 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 Revised Schedule III to the Companies Act, 2013

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current assets / liabilities include the current portion of non current financial assets / liabilities respectively. All other assets / liabilities are classified as noncurrent.

Normal operating cycle (Six months) is based on the time between the acquisition of assets for processing and their realisation into cash and cash equivalents

IV. CASH FLOW STATEMENT

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash flows from operating activities are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

V. TANGIBLE FIXED ASSETS & DEPRECIATION Tangible Assets.

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition to fixed assets which takes a substantial period of time to get ready for its intended use are also included to the extent they relates to the period till such assets are ready to be put to use.

Depreciation

Depreciation on assets is provided using the Straight Line Method at the rates computed based on the estimated useful life of the assets, which are equal to corresponding rates prescribed under the Schedule II to the Companies Act, 2013.

VI RETIREMENT AND OTHER EMPLOYEE BENEFITS.

Defined Contribution Plan

Contributions to the provident and pension funds are made monthly at a predetermined rate to the Regional Provident Fund Commissioner and debited to the profit and loss account on an accrual basis. There are no other obligations other than the contribution payable to the respectable funds.

Defined Benefit Plan

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method and spread over the period during which the benefit is expected to be derived from employees' services, consistent with the advice of qualified actuaries.

The long term obligations are measured at present value of estimated future cash flows discounted at rates reflecting the yields on risk free government bonds that have maturity dates approximating the terms of the Company's obligations. Short- term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

All actuarial gains and losses arising during the year are recognized in the statement of profit and loss.

VIII. INVENTORIES

Inventories are stated at cost or net realizable value, whichever is lower. Net realisable value (NRV) is the estimated selling price in the ordinary course of the business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of all categories of inventory is determined using weighted average cost method. The cost is arrived at first in first out basis(FIFO).

IX. REVENUE RECOGNITION Sale of Goods

Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of products are transferred to customers. Sale of goods is recognised on dispatch of goods. Sales excludes sales tax / VAT, discounts and returns as applicable.

Sale of Services

Revenue from rendering of services priced on a time and material basis is recognised on rendering of services as per the terms of contracts with customers

X. INCOME TAX EXPENSE

Income tax expense comprises current tax and deferred tax charge or credit.

Current tax.-The current charge for income taxes is calculated in accordance with the relevant tax Regulations applicable to the Company.

Deferred tax.-Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax consequences of timing differences that originate in the tax holiday period and reverse after the tax holiday period are recognised in the period in which the timing differences originate. Timing differences that originate and reverse within the tax holiday period are not considered for deferred tax purposes. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case maybe) to be realised. Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to set-off assets against liabilities representing current tax.

XI. RESEARCH & DEVELOPMENT

Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if:

- Development costs can be measured reliably;

- The product or process is technically and commercially feasible;

- Future economic benefits are probable; and

- The Company intends to and has sufficient resources to complete development and has the ability to use or sell the asset.

XII. EARNING PER SHARE

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Since there is no potential dilutive equity shares hence there is no impact on basic EPS while calculating dilutive EPS.

XIII. SEGMENT REPORTING

In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of Usha General Food Limited (holding company) and therefore, no separate disclosure on segment information is given in these financial statements.

XIII PROVISIONS

A provision is recognized when an company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined on best estimate basis required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed in the financial statement.

XIV IMPAIRMENT

The carrying amounts are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.


Mar 31, 2014

I. BASIS OF PREPARATION

The financial statements of Wellesley Corporation Limited have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention unless otherwise stated and on the basis of the principle of accrual. GAAP comprises accounting standards notified by the Central Government of India under Section 211 (3C) of the Companies Act, 1956, as amended, to the extent applicable, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 1956.

The company, generally, follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except those with significant uncertainties.

II. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates and assumptions and such differences, if arise, are recognized in the period in which the results are crystallized.

Ill CURRENT AND NON CURRENT CLASSIFICATION

All the 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 Revised Schedule VI to the Companies Act, 1956.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months afterthe reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months afterthe reporting date.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months afterthe reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current assets / liabilities include the current portion of non current financial assets / liabilities respectively. All other assets / liabilities are classified as noncurrent.

Normal operating cycle (Six months) is based on the time between the acquisition of assets for processing and their realisation into cash and cash equivalents

IV. CASH FLOW STATEMENT

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash flows from operating activities are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

V TANGIBLE FIXED ASSETS & DEPRECIATION

Tangible Assets.

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost cf bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition to fixed assets which takes a substantial period of time to get ready for its intended use are also included to the extent they relates to the period till such assets are ready to be put to use.

Depreciation

Depreciation on assets is provided using the Straight Line Method at the rates computed based on the estimated useful life of the assets, which are equal to corresponding rates prescribed under the Schedule XIV to the Companies Act, 1956.

VI RETIREMENT AND OTHER EMPLOYEE BENEFITS.

Defined Contribution Plan

Contributions to the provident and pension funds are made monthly at a predetermined rate to the Regional Provident Fund Commissioner and debited to the profit and loss account on an accrual basis. There are no other obligations other than the contribution payable to the respectable funds.

Defined Benefit Plan

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method and spread over the period during which the benefit is expected to be derived from employees'' services, consistent with the advice of qualified actuaries.

The long term obligations are measured at present value of estimated future cash flows discounted at rates reflecting the yields on risk free government bonds that have maturity dates approximating the terms of the Company''s obligations. Short- term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

All actuarial gains and losses arising during the year are recognized in the statement of profit and loss.

VIII. INVENTORIES

Inventories are stated at cost or net realizable value, whichever is lower. Net realisable value (NRV) is the estimated selling price in the ordinary course of the business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of all categories of inventory is determined using weighted average cost method. The cost is arrived at first in first out basis(FIFO).

IX. REVENUE RECOGNITION

Sale of Goods

Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of products are transferred to customers. Sale of goods is recognised on dispatch of goods. Sales excludes sales tax / VAT, discounts and returns as applicable.

Sale of Services

Revenue from rendering of services priced on a time and material basis is recognised on rendering of services as per the terms of contracts with customers

X. INCOME TAX EXPENSE

Income tax expense comprises current tax and deferred tax charge or credit.

Current tax.-The current charge for income taxes is calculated in accordance with the relevant tax Regulations applicable to the Company.

Deferred tax.-Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax consequences of timing differences that originate in the tax holiday period and reverse after the tax holiday period are recognised in the period in which the timing differences originate. Timing differences that originate and reverse within the tax holiday period are not considered for deferred tax purposes. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case maybe) to be realised. Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to set-off assets against liabilities representing current tax.

XI. RESEARCH & DEVELOPMENT

Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if:

Development costs can be measured reliably;

The product or process is technically and commercially feasible;

Future economic benefits are probable; and

The Company intends to and has sufficient resources to complete development and has the ability to use or sell the asset.

XII. EARNING PER SHARE

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Since there is no potential; dilutive equity shares hence there is no impact on basic EPS while calculating dilutive EPS.

XIII. SEGMENT REPORTING

In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of Usha General Food Limited (holding company) and therefore no separate disclosure on segment information is given in these financial statements.

XIII. PROVISIONS

A provision is recognized when an company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined on best estimate basis required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed in the financial statement.

XIV. IMPAIRMENT

The carrying amounts are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.


Mar 31, 2013

I. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company

II. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

III. FIXEDASSETS

Tangible Assets.

Fixed assets are stated at cost, less accumulated depreciation and impairment loses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition to fixed assets which takes a substantial period of time to get ready for its intended use are also included to the extent they relates to the period till such assets are ready to be put to use.

Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses.if any The cost of an intangible asset comprises its purchase price,including any import duties and and other taxes (other than those subsequently recoverable from the taxing authorities )and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.subsequently expenditure on an intangible asset after its purchase /completion is recognized as an expenses when incurred unless its is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably ,in which cases such expenditure is added to the cost of the asset.

IV. DEPRECIATION

Depreciation on assets is provided using the Straight Line Method at the rates computed based on the estimated useful life of the assets, which are equal to corresponding rates prescribed underthe Schedule XIV to the Companies Act, 1956.

V IMPAIRMENT

The carrying amounts are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

VI INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investment is classified as long-term investment. Current investments are carried at the lower of cost and fair value determined on an individual investment basis. Long Term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporarily in the value of the investments.

VII. RETIREMENT AND OTHER EMPLOYEE BENEFITS.

Defined Contribution Plan

Contributions to the provident and pension funds are made monthly at a predetermined rate to the Regional Provident Fund Commissioner and debited to the profit and loss account on an accrual basis. There are no other obligations other than the contribution payable to the respectable funds.

Defined Benefit Plan

Gratuity liability is defined benefit obligations and liability toward gratuity is provided on the basis of an actuarial valuation as at balance sheet date using the Projected Unit Credit method and debited to the profit and loss account on an accrual basis. Actuarial gains and losses arising during the year are recognized in the profit and loss account.

Long term compensated absence is similarity valued on an actuarial basis. Short term compensated absence are provided for on estimates basis.

VIII. INVENTORIES

Inventories are stated at cost or net realizable value, whichever is lower. The cost is arrived at on first in first out method (FIFO).

IX. REVENUE RECOGNITION

Sales have been recognized on the basis of works completed, completion of services & dispatch of goods and billed to the customers.

X. PRIOR PERIOD ITEMS

Income and Expenses pertaining to the earlier year, if any, which have a material impact on the financial statements are disclosed separately,.

XI. TAXATION

Tax expense is comprised of current and deferred tax. Current income tax is measured at the amount expected to be paid to the authority in accordance with the Income - tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax and deferred tax liabilities relate to the taxes on income levied by some governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognized unrecognized deferred tax assets to the extent that it has become reasonable certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

XII. EARNING PER SHARE

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

XIII PROVISIONS

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined bases on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed in the financial statement.


Mar 31, 2012

I. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company

II. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

III. FIXEDASSETS

Fixed assets are stated at cost, less accumulated depreciation and impairment loses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition to fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relates to the period till such assets are ready to be put to use.

IV. DEPRECIATION

Depreciation on assets is provided using the Straight Line Method at the rates computed based on estimated useful life of the assets, which are equal to corresponding rates prescribed under Schedule XIV to the Companies Act, 1956.

V. IMPAIRMENT

The carrying amounts are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing valuein use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

VI. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investment are classified as long-term investment. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long Term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

VII. RETIREMENT AND OTHER EMPLOYEE BENEFITS.

Defined Contribution Plan

Contributions to the provident and pension funds are made monthly at a predetermined rate to the Regional Provident Fund Commissioner and debited to the profit and loss account on an accrual basis. There are no other obligations other than the contribution payable to the respectable funds.

Defined Benefit Plan

Gratuity liability is defined benefit obligations and liability toward gratuity is provided on the basis of an actuarial valuation as at balance sheet date using the Projected Unit Credit method and debited to the profit and loss account on an accrual basis. Actuarial gains and losses arising during the year are recognized in the profit and loss account.

Long term compensated absence is similarity valued on an actuarial basis. Short term compensated absence are provided for on estimates basis.

VIII. INVENTORIES

Inventories are stated at cost or net realizable value, whichever is lower. The cost is arrived at on first in first out method (FIFO).

IX. REVENUE RECOGNITION

Sales have been recognized on the basis of works completed and billed to the customers.

X. PRIOR PERIOD ITEMS

Income and Expenses pertaining to the earlier year, if any, which have a material impact on the financial statements are disclosed separately,.

XI. TAXATION

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the authority in accordance with Income-tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax and deferred tax liabilities relate to the taxes on income levied by some governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. In situation where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognized unrecognized deferred tax assets to the extent that it has become reasonable certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

XII. EARNING PER SHARE

Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

XIII PROVISIONS

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined bases on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed in the financial statement.


Mar 31, 2010

A) The accounts have been prepared on accrual basis & at historical cost except where stated otherwise and also on the basis of applicable mandatory accounting standards.

b) FIXED ASSETS

Fixed assets are stated at historical cost less depreciation and at revalued amount, if any.

DEPRECIATION

Depreciation has been provided on straight-line method as perthe rates and manner prescribed in schedule XIV to the companies Act, 1956.

c) INVESTMENTS

Long-term investments are stated at cost and provision for permanent diminution is made, if there is a decline in the value otherthan temporary in nature.

d) INVENTORIES

Inventories are valued at lower of cost and Net realizable value in case of finished goods and at cost in case of work in progress.

e) PRIOR PERIOD ITEMS

Income and Expenses pertaining to the earlier year, if any, which have a material impact on the financial statements are disclosed separately,.

f) RETIREMENT BENEFITS

i) Contribution to Provident fund is made monthly, at a predetermined rate to the P. F. Department and debited to the Profit and Loss Account on accrual basis.

ii) The provision for gratuity and leave encashment has been made as per the actuarial valuation.

g) REVENUE RECOGNITION

Sales have been recognized on the basis of agreement to sales with the buyer.

h) CONTINGENT LIABILITIES

Contingent Liabilities are provided on the basis of prudence.

i) INCOME TAX

Provision for Income Tax is determined on the basis of Taxable Income forthe Year as per Income Tax Act, 1961.

j) DEFERRED TAX

Deferred taxis recognised, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.


Mar 31, 2009

A) The accounts have been prepared on accrual basis & at historical cost except where stated otherwise and also on the basis of applicable mandatory accounting standards.

b) FIXED ASSETS

Fixed assets are stated at historical cost less depreciation and at revalued amount, if any.

DEPRECIATION

Depreciation has been provided on straight-line method as per the rates and manner prescribed in schedule XIV to the companies Act, 1956.

c) INVESTMENTS

Long-term investments are stated at cost and provision for permanent diminution is made, if there is a decline in the value other than temporary in nature.

d) INVENTORIES

Inventories are valued at lower of cost and Net realizable value in case of finished goods and at cost in case of work in progress.

e) PRIOR PERIOD ITEMS

Income and Expenses pertaining to the earlier year, if any, which have a material impact on the financial statements are disclosed separately,.

f) RETIREMENT BENEFITS

i) Contribution to Provident fund is made monthly, at a predetermined rate to the P. F. Department and debited to the Profit and Loss Account on accrual basis.

ii) The provision for gratuity and leave encashment has been made as per the actuarial valuation.

g) REVENUE RECOGNITION

Sales have been recognized on the basis of agreement to sales with the buyer.

h) CONTINGENT LIABILITIES

Contingent Liabilities are provided on the basis of prudence.

 
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