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Accounting Policies of Williamson Magor & Company Ltd. Company

Mar 31, 2015

A) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accural basis. Pursuant to section 133of the Companies Act, 2013( the " Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects withthe accounting standards notifiedunder Section211(3C) [Companies (Accounting Standards) Rules, 2006, as amended], the other relevant provisions of the Act and to the extent applicable, with the provisions ofNon- Banking Financial( Non- Deposit Accepting or Holding) Companies Prudential Norms( Reserve Bank) Directions, 2007[NBFC Directions].

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule III to the Companies Act, 2013. Considering its nature ofbusiness, the Companyhas ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b) Tangible Assets

Tangible assets are stated at cost of acquisition net of accumulated depreciation and accumulated impairment losses, if any.

An impairment loss is recognized where applicable when the carrying value of tangible asset exceeds their net realisable value or value in use, whichever is higher.

Profit or loss on disposal of tangible assets is recognised in the Statement ofProfit and Loss.

c) Depreciation

Depreciation on tangible assets (other than Land- Freehold) is provided on pro-rata basis on reducing balance method over the estimated useful lives of the assets as specified in requirement of Schedule II to the Act. (also referNote 1(l) below)

d) Investments

Investments which are oflong term nature are stated at cost less amounts written off/provided for when the directors are of the opinion that diminutions other than temporary, in their carrying values have taken place.

e) Revenue Recognition

Operating Revenue :

Dividend income is recognized when right to receive dividend is established.

Interest income is generally recognised on a time proportion basis taking into account the amount outstanding and the rate applicable, when there is reasonable certainty as to realisation and guided by NBFC Directions.

Other operating revenue is recognised when there is reasonable certainity as to its realisation.

Service Income is accounted for based on business arrangements in existence on rendering of services. Lease rental income under operating lease is recognised in the Statement ofProfit and Loss.

f) Employee Benefits

Short term employee benefits :

These are recognised at the undiscounted amount in the Statement ofProfit and Loss for the year in which the related service is rendered .

Post Employment Benefit Plans :

Contributions under Defined Contribution Plans are recognised on accrual basis as expenses for the year. In case of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial

valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss . The retirement benefit obligation provided in the Balance Sheet represents the present value of defined benefit obligations.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. All foreign currency monetary items are restated at the year-end at the closing rate. Exchange differences arising on settlement /reinstatement are recognised in the Statement of Profit and Loss.

h) Borrowing Cost

Borrowing costs relating to acquisition/ construction of qualifying assets, if any, are added to the cost of such assets until such time as the assets are substantially ready for their intended use. All other borrowing costs are charged to the Statement ofProfit and Loss.

i) Lease

The Company has leased certain tangible assets and such leases where the Company has substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognised in the Statement of Profit and Loss on a straight line basis over the lease term which is representative of the time pattern in which benefit derived from the use of the leased asset is diminished.

j) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period as per the applicable tax rates and laws.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when its virtually certain that sufficient future taxable income will be available against which such deferred tax assets will be realised. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date.

k) Provision and Contingent Liabilities

Provisions : Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past event, the existence of which will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

l) Revision in useful lives of Tangible Assets

Effective 1st April 2014, the Company has charged depreciation in keeping with the requirements of Schedule II to the Act and as a result of which the estimated useful lives of certain tangible assets have been revised. Pursuant to the transitional provision set out in the said Schedule II, the carrying amount (after retaining the residual values) aggregating Rs. 110 thousand (31st March, 2014: Nil) relating to tangible amounts where the revised useful lives are Nil as at 1st April, 2014 has been debited to General Reserve (Refer Note 3). Further the related tax impact on such adjustment amounting to Rs. 38 thousand (31st March, 2014: Nil) has also been credited to General Reserve. Accordingly the depreciation expense for the year ended 31st March, 2015 is higher and the Loss before Tax for said year is higher by Rs. 852 thousand (31st March, 2014: Nil).


Mar 31, 2014

A) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis[Also refer Note 1 (b) below]. Pursuant to circular 15/2013 dated 13th September, 2013 read with circular 08/2014 dated 4th April,2014, both issued by the Ministry of Corporate Affairs, Government of India, till the Standards of Accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3 C) [Companies (Accounting Standard) Rules, 2006, as amended ], the other relevant provisions of the Companies Act, 1956 and to the extent applicable, with the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 [NBFC Directions].

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule VI to the Companies Act, 1956. Considering its nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b) Change in Accounting Policy

The Company used to carry all its assets following historical cost convention with the exception of certain tangible assets (Freehold Land and Buildings). For the purpose of ensuring uniformity of accounting policy with regard to accounting of assets and for better presentation with effect from current financial year, the aforesaid tangible assets (i.e Freehold Land and Buildings), have been stated at cost less accumulated depreciation pertaining to such cost and accordingly Revaluation Reserve balance of Rs. 452837 thousands as at 31st March, 2014 attributable to the aforesaid tangible assets has been reversed with corresponding reduction in the book value of such assets. Such change in accounting policy, however, does not have any impact on the loss for the current period.

c) Tangible Assets

Tangible assets are stated at cost of acquisition net of accumulated depreciation and accumulated impairment losses, if any. Also refer Note 1(b) above.

An impairment loss is recognized where applicable when the carrying value of tangible asset exceeds their net realisable value or value in use, whichever is higher.

Profit or loss on disposal of tangible assets is recognised in the Statement of Profit and Loss.

d) Depreciation

Depreciation on tangible assets (other than Land- Freehold ) is provided on reducing balance method in accordance with Schedule XIV of the Companies Act, 1956. Additional charges of depreciation for the year on differential increase in values arising out of revaluation is adjusted against withdrawal from Revaluation Reserve upto 31st March 2014. Also refer Note 1(b) above.

e) Investments

Investments which are of long term nature are stated at cost less amounts written off/provided for when the directors are of the opinion that diminutions other than temporary, in their carrying values have taken place.

f) Revenue Recognition

Operating Revenue :

Dividend income is recognized when right to receive dividend is established.

Interest income is generally recognised on a time proportion basis taking into account the amount outstanding and the rate applicable, when there is reasonable certainty as to realisation and guided by NBFC Directions.

Other operating revenue is recognised when there is reasonable certainity as to its realisation.

Service Income is accounted for based on business arrangements in existence on rendering of services.

Lease rental income under operating lease is recognised in the Statement of Profit and Loss.

g) Employee Benefits

Short term employee benefits :

These are recognised at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

Post Employment Benefit Plans :

Contributions under Defined Contribuition Plans are recognised on accrual basis as expenses for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss . The retirement benefit obligation provided in the Balance Sheet represents the present value of defined benefit obligations.

h) Foreign Currency Transactions

Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. All monetary items are restated at the year-end at the closing rate. Exchange differences arising on settlement /reinstatement are recognised in the Statement of Profit and Loss.

i) Borrowing Cost

Borrowing costs relating to acquisition/ construction of qualifying assets, if any, are added to the cost of such assets until such time as the assets are substantially ready for their intended use. All other borrowing costs are charged to the Statement of Profit and Loss. j) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period as per the applicable tax rates and laws.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when it is virtually certain that sufficient future taxable income will be available against which such deferred tax assets will be realised.

Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date.

k) Provision and Contingent Liabilities

Provisions : Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past event, the existence of which will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.


Mar 31, 2013

A) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standard) Rules, 2006, as amended], the other relevant provisions of the Companies Act, 1956 and to the extent applicable, with the provisions of Non- Bankmg Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 [NBFC Directions].

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule VI to the Companies Act, 1956. Considering its nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b) TangibleAssets

Tangible assets are stated at cost of acquisition and at revaluation on current cost basis for certain assets, net of accumulated depreciation and accumulated impairment losses, if any.

An impairment loss is recognised where applicable when the carrying value of tangible asset exceeds their net realisable value or value in use, whichever is higher.

Profit or loss on disposal of tangible assets is recognised in the Statement of Profit and Loss.

c) Depreciation

Depreciation on tangible assets (other than Land-Freehold) is provided on reducing balance method in accordance with Schedule XIV to the Companies Act,1956. Additional charges of depreciation for the year on differential increase in values arising out of revaluation is adjusted against withdrawal from Revaluation Reserve.

d) Investments

Investments which are of long term nature are stated at cost less amounts written off/provided for when the directors are of the opinion that diminutions other than temporary, in their carrying values have taken place.

e) Revenne Recognition

Operating Revenue:

Dividend income is recognised when right to receive dividend is established.

Interest income is generally recognised on a time proportion basis taking into account the amount outstanding and the rate applicable, when there is reasonable certainty as to realisation and guided by NBFC Directions.

Other operating revenue is recognised when there is reasonable certamity as to its realisation.

Service Income is accounted for based on business arrangements in existence on rendering of services.

Lease rental income under operating lease is recognised in Statement of Profit and Loss.

f) Employee Benefits

Short term employee benefits:

These are recognised at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

Post Employment Benefit Plans:

Contributions under Defined Contribution Plans are recognised on accrual basis as expenses for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gams and losses are recognised immediately in the Statement of Profit and Loss. The retirement benefit obligation provided in the Balance Sheet represents the present value of defined benefit obligations.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. All monetary items are restated at the year-end at the closing rate.

h) Borrowing Cost

Borrowing costs relating to acquisition/construction of qualifying assets, if any, are added to the cost of such assets until such time as the assets are substantially ready for their intended use. All other borrowing costs are charged to Statement of Profit and Loss.

i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period as per the applicable tax rates and laws.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when it is virtually certain that sufficient future taxable income will be available against which such deferred tax assets will be realised.

Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date.

j) Provision and Contingent Liabilities

Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past event, the existence of which will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.


Mar 31, 2012

A) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accural basis, except for certain tangible assets which are being carried at revalued amounts. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies ( Accounting Standard) Rules, 2006, as amended ], the other relevant provisions of the Companies Act, 1956 and to the extent applicable, with the provisions of Non- Banking Financial ( Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 [NBFC Directions].

All assets and liabilities have been classified as current or non-current as per the criteria set out in the schedule VI to the Companies Act, 1956. Considering its nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b) Tangible Assets

Tangible assets are stated at cost of acquisition and at revaluation on current cost basis for certain assets, net off accumulated depreciation and accumulated impairment losses, if any.

An impairment loss is recognized where applicable when the carrying value of tangible asset exceeds their net realisable value or value in use, whichever is higher.

Profit or loss on disposal of tangible assets is recognised in the Profit and Loss Statement.

c) Depreciation

Depreciation on tangible assets (other than Land Freehold) is provided on reducing balance method in accordance with Schedule XIV of the Companies Act,1956. Additional charges of depreciation for the year on differential increase in values arising out of revaluation is adjusted against withdrawal from Revaluation Reserve.

d) Investments

Investments which are of long term nature are stated at costless amounts written off/provided for when the directors are of the opinion that diminutions other than temporary, in their carrying values have taken place.

e) Revenue Recognition Operating Revenue :

Dividend income is recognized when right to receive dividend is established.

Interest income is generally recognized on a time proportion basis taking into account the amount outstanding and the rate applicable, when there is reasonable certainty as to realisation and guided by NBFC Directions.

Other operating revenue is recognised when there is reasonable certainity as to its realisation.

Service Income is accounted for based on business arrangements in existence on rendering of services.

Lease rental income under operating lease is recognised in Profit and Loss Statement.

f) Employee Benefits

Short term employee benefits :

These are recognised at the undiscounted amount in the profit and loss statement for the year in which the related service is rendered .

Post Employment Benefit Plans :

Contributions under Defined Contribuition Plans are recognised on accrual basis as expenses for the year.

Incase of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gains and losses are recognized immediately in the Profit and Loss Statement. The retirement benefit obligation provided in the Balance Sheet represents the present value of defined benefit obligations.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. All monetary items are restated at the year-end at the closing rate.

h) Borrowing Cost

Borrowing costs relating to qualifying assets, if any, are added to the cost of such assets. Other borrowing costs are charged to Profit and Loss Statement.

i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period as per the applicable tax rates and laws.

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when its virtually certain that sufficient future taxable income will be available against which such deferred tax assets will be realized.

Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date.

j) Provision and Contingent Liabilities

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past event, the existence of which will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.


Mar 31, 2011

(a) BASIS FOR PREPARATION OF ACCOUNTS : The accounts have been prepared to comply with all material aspects with applicable principles in India, the applicable Accounting Standards notified under Section 211(3C) of the Companies Act,1956, and other relevant provisions of the said Act.

(b) BASIS OF ACCOUNTING : The financial statements have been prepared in accordance with the historical cost convention as modified by revaluation of certain fixed assets.

(c) FIXED ASSETS AND DEPRECIATION : Tangible fixed assets are stated at cost of acquisition and at revaluation on current cost basis for certain assets.

Depreciation on fixed assets is provided on reducing balance method in accordance with Schedule XIV of the Companies Act, 1956. Additional charges of depreciation for the year on differential increase in values arising out of revaluation is adjusted against withdrawal from Revaluation Reserve.

An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds their market value or value in use, whichever is higher.

Profit or loss on disposal of fixed assets is recognised in the Profit and Loss Account.

(d) INVESTMENTS

Investments which are of long term nature are stated at cost less amounts written off when the directors are of the opinion that permanent diminution in their carying values have taken place.

(e) INCOME FROM INVESTMENTS AND INTEREST

Dividend from investments is accounted for on receipt of the same. Interest is accounted for on accrual basis, and guided by the Rules framed for Non Banking Financial Company by the Reserve Bank of India.

(f) SERVICE INCOME : These are accounted for based on business arrangements in existence.

(g) LEASE RENT : Lease income under operating lease are recognised in Profit & Loss account.

(h) EMPLOYEE BENEFITS:

i) Short term employee benefits : These are recognised at the undiscounted amount in the profit and loss account for the year in which the related service is rendered.

ii) Post Employment Benefit Plans : Contributions under Defined Contribution Plans are recognised on accrual basis as expenses for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gains and losses are recognised immediately in the profit and loss account. The retirement benefit obligation provided in the Balance Sheet represents the present value of the defined benefit obligation.

(i) FOREIGN CURRENCY TRANSACTIONS : Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions.

0) BORROWING COSTS : Borrowing costs, other than those on qualifying assets are charged to Profit & Loss Account.

(k) TAXES ON INCOME : Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when it is virtually certain that sufficient future taxable income will be available against which such deferred tax assets can be realised.














Mar 31, 2010

(a) BASIS FOR PREPARATION OF ACCOUNTS : The accounts have been prepared to comply with all material aspects with applicable principles in India,the applicable Accounting Standards notified under Section 211(3C) of the Companies Act,1956, and other relevant provisions of the said Act.

(b) BASIS OF ACCOUNTING : The financial statements have been prepared in accordance with the historical cost convention as modified by revaluation of certain fixed assets.

(c) FIXED ASSETS AND DEPRECIATION : Tangible fixed assets are stated at cost of acquisition and at revaluation on current cost basis for certain assets. Depreciation on fixed assets is provided on reducing balance method in accordance with Schedule XIV of the Companies Act, 1956. Additional charges of depreciation for the year on differential increase in values arising out of revaluation is adjusted against withdrawal from Revaluation Reserve.

An impairment loss is recognised where applicable when the carrying value of Fixed Assets exceeds their market value or value in use, whichever is higher.

Profit or loss on disposal of fixed assets is recognised in the Profit and Loss Account.

(d) INVESTMENTS

Investments which are of long term nature are stated at cost less amounts written off when the directors are of the opinion that permanent diminutions in their carying values have taken place.

(e) INCOME FROM INVESTMENTS AND INTEREST

Dividend from investments is accounted for on receipt of the same. Interest is accounted for on accrual basis, and guided by the Rules framed for Non Banking Financial Company by the Reserve Bank of India.

(f) SERVICE INCOME : These are accounted for based on business arrangements in existence.

(g) LEASE RENT : Lease income under operating lease are recognised in Profit & Loss account.

(h) EMPLOYEE BENEFITS :

i) Short term employee benefits : These are recognised at the undiscounted amount in the profit and loss account for the year in which the related service is rendered

ii) Post Employment Benefit Plans : Contributions under Defined Contribution Plans are recognised on accrual basis as expenses for the year. In case of Defined Benefit Plans, the cost of providing the benefit is determined on the basis of actuarial valuation using the Projected Unit Credit Method at each Balance Sheet date.

Actuarial gains and losses are recognised immediately in the profit and loss account. The retirement benefit obligation provided in the Balance Sheet represents the present value of the defined benefit obligation.

(i) FOREIGN CURRENCY TRANSACTIONS : Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions.

(j) BORROWING COSTS : Borrowing costs, other than those on qualifying assets are charged to Profit & Loss Account.

(k) TAXES ON INCOME : Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred Tax Assets in respect of carry forward losses and/or unabsorbed depreciation are recognised only when it is virtually certain and in respect of other assets where there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

 
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