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Accounting Policies of Wires and Fabriks (S.A.) Ltd. Company

Mar 31, 2016

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The Financial Statements of the Company have been prepared in accordance with the generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respect with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

c) The Accounting Policies adopted in the preparation of financial statements are consistent with those used in previous year, except for the change in accounting policy explained below:

As per the requirements of pre-revised Accounting Standard- 4, the Company used to create a liability for dividend proposed after the balance sheet date if dividend related to periods covered by the financial statements. Going forward, as per Accounting Standard- 4(Revised), the Company cannot create provision for dividend proposed after the balance sheet date. However, Company will need to disclose the same in notes to the financial statements. Accordingly, the Company has disclosed dividend proposed by board of directors after the balance sheet date in the notes to the financial statements.

2 REVENUE RECOGNITION :

a) Revenue is recognized on completion of sale and rendering of services.

b) Income and expenditure are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers’ claims are accounted for as and when arise / settled on the basis of joint performance analysis/ assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognized on post export basis on entitlement rates.

e) Government grants are recognized on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

The preparation of financial statements requires estimates to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less accumulated depreciation.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on “straight line method” and on Wind Power Plant on “Written down value method” based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

c) Amortization of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalization.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognize a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realizable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalized and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognized funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognized as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognized as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except whole time Directors and new employees ) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC .

c) Provision for leave encashment and Gratuity liability of whole time Directors and new employees , which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company’s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognizes the same, if there is convincing evidence that the company will utilize the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognized when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements


Mar 31, 2015

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

The preparation of financial statements requires estimates to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materalised.

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less accumulated depreciation.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors and new employees) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors and new employees, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers'' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

The preparation of financial statements requires estimates to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materalised.

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,19S6.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work-in-Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors and new employees ) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors and new employees , which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers'' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

The preparation of financial statements requires estimates to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materalised.

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work-in- Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profits Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING:

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION:

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

2. REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis/ assessment.

c) Sales includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3. USE OF ESTIMATES

The preparation of financial statements requires estimates to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materalised.

4. FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets , as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software : in the year of of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5. BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6. INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7. INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8. RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9. EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC .

c) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10. FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11. SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12. TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13. IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14. PROVISIONS.CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements


Mar 31, 2011

A) GENERAL:

1) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

2) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

B) REVENUE RECOGNITION :

1) Revenue is recognised on completion of sale and rendering of services.

2) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis / assessment.

3) Sales includes export incentives, packing charges, excise duty, sales tax & VAT and are net of discounts & returns in respect of earlier years.

4) Export Incentives are recognised on post export basis on entitlement rates.

5) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof

C) FIXED ASSETS:

1) Fixed Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made

2) Depreciation on all fixed assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act. 1956. Depreciation also includes amortisation of (a) leasehold land over the period of lease and (b) Intangible assets (computer software ) in the year of purchase/use.

3) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

4) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

D) BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets, All other borrowing costs are charged to revenue.

E) INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

F) INVENTORIES :

1) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

2) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

G) RESEARCH AND DEVELOPMENT EXPENDITURE :

1) Capital Expenditure is included in Fixed Assets & Capital Work-in-Progress and depreciation is provided at the respective applicable rates.

2) Revenue Expenditure is charged off in the year in which they are incurred.

H) EMPLOYEE BENEFITS :

1) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

2) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

3) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

I) FOREIGN CURRENCY TRANSACTIONS:

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

J) SEGMENT ACCOUNTING :

1) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

2) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable/identifiable/allocable on a reasonable basis to a business segment are shown as unallocated.

K) TAXATION:

1) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case.

2) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

L) IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

M) PROVISIONS,CONTINGENT LIABILITY AND CONTINGENT ASSETS :

1) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

2) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

A) GENERAL:

1) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

2) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

B) REVENUE RECOGNITION :

1) Revenue is recognised on completion of sale and rendering of services.

2) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received/settled. Customers claims are accounted for as and when arise/settled on the basis of joint performance analysis/assessment.

3) Sales includes packing charges, excise duty, sales tax & VAT and are net of discounts & returns in respect of earlier years.

4) Government grants are recognized on receipt/reasonable ascertainment of ultimate collection thereof.

C) FIXED ASSETS :

1) Fixed Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

2) Depreciation on all fixed assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956. Depreciation also includes amortization of (a) leasehold land over the period of lease and (b) Intangible assets (computer software) in the year of purchase/use.

3) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

4) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

D) BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

E) INVESTMENTS:

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carreid at cost. Provision for diminution in value of investments is made to recognize a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

F) INVENTORIES:

1) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

2) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

G) RESEARCH AND DEVELOPMENT EXPENDITURE :

1) Capital Expenditure is included in Fixed Assets & Capital Work-in-Progress and depreciation is provided at the respective applicable rates.

2) Revenue Expenditure is charged off in the year in which they are incurred.

H) EMPLOYEE BENEFITS :

1) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Acoount of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

2) The Company has taken group gratuity policy with Life Insurance Corporation of India (DC) for future payment of Gratuity liability. The gratuity liability is determined and provided for based on an actuarial valuation performed by LIC.

3) Provision for leave encashment, which is a defined benefit has been ascertained on an actuarial valuation by an independent actuary as at the Balance Sheet date.

I) FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

J) SEGMENT ACCOUNTING:

1) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

2) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable/ identifiable/ allocable on a reasonable basis to a business segment are shown as unallocated.

K) TAXATION :

1) Provision for current tax is made and retained in the acounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Companys case.

2) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainity that these assets can be realised in future.

L) IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of 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 recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

M) PROVISIONS,CONTINGENT LIABILITY AND CONTINGENT ASSETS :

1) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

2) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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