Mar 31, 2009
A) Basis of preparation of Financial Statements :
The accounts are preparer under the historical cost convention and
materially comply with the mandatory Accounting Standards referred
under section 211 (3C) of the Companies Act 1956 ana in the formal
prescribed under Schedule VI of the Companies Act 1956 along with the
required disclosures therein
b) Uso of estimates :
The preparation of financial statements requires management of the
company to make estimates and assumptions that at affect the reported
balances of assets and liabilities, the disclosure of contingent
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the year reported. Examples of
such estimates include provision for doubtful debts, income taxes and
future obligations under employee retirement benefit plans Actual
results could other from those estimates Any revision to accounting
estimates is recognised in accordance with the requirements of the
respective Accounting Standard.
c) Fixed Assets :
Fixed assets are staled at historical cost including directly
attributable costs Of bringing the assets to their working condition
d) Depreciation :
Depreciation on Fixed Assets is provided on straight line method in
accordance with the rates and in the manner prescribed in Schedule XIV
of the Companies Act 195E on pro-rata basis Intangible assets are being
amortised over their useful life of 5 years
c} Investments:
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments and are earned
at ower of cost and fair value determined on an individual investment
oasis whereas all other investments are classified as long term
investments and are earned at cost except provision for diminution in
value is made to recognize a decline other than temporary as specified
in Accounting Standard (AS-13) on Accounting for Investments.
f) Investments ;
Inventories are valued as under ;
Raw Material is valued at lower of cost arrived on FIFO basis and net
realisable value Stocks process is valued at lower of cost and net
market realisable value Cost is taken upto the slage of completion of
product inclusive of appropriate portion of overheads.
Finished manufactured Goods is valued at lower of cast and net market
realisable value. Traded Goods is valued at lower of cost arrived on
FIFO basis and net market realisable value
g) Revenue Recognition :
Sales of products are recognised when the products are dispatched
Revenue from Service operations is recognised when the services are
rendered Other revenue/income and cost/expenditure are accounted for on
accrual basis
h) Foreign Currency Transaction :
Transactions in foreign currency are recorded at the foreign exchange
rate prevailing on the date of the transactions Liabilities denominated
in foreign currency are restated at the rate as on the dale of Balance
Sheet and resulting difference is transferred to profit &, Loss account
or the assets account as the case may be However as prescribed by the
Notification of the Companies (Accounting Standards) Amendment Rules
2006 on 31.03.2009 on AS-11 the foreign exchange difference relating to
long term monetary items which are in relation to the acquisition of a
depreciable capital asset are are addede/deducied with the cost of
asset and is depreciated over the balance life of the asset and in
other cases the differences are accumulated in a "Foreign Currency
Monetary Item Translation Difference Account " and amortised to the
Profit & Loss account over the balance life of the long term monetary
item but not exceeding 31st March 2011
i> Employees Benefits :
Liability is provided for employees benefits of provident fund,
gratuity, earned leave in respect of eligible employees. Contributions
under the defined contribution scheme are charged to revenue The
liability in respect of defined benefit scheme like gratuity and earned
leaves is provided in the accounts on the basis of actual valuation as
on the balance sheet date in accordance with Accounting Standard
(AS-15) on Employee Benefits"
(Revised) issued by the institute of Chartered Accountants of india
j) Borrowing Costs :
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are changed to
revenue
k> Premises Taken on Lease :
For premises taken on lease, lease rentals payable are charged to
revenue
l) Taxes on Income :
Tax expense comprises current income lax. wealth tax, deferred tax and
fringe benefit tax(including interest payable) Current income
tax,wealth tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
provision of Income Tax Act 1961 Deferred lax is recognised, on timing
difference, 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 Where there is unabsorbed depreciation or
carried forward tosses, deferred tax assets are recognised only it
there is virtual certainty of realisation of such assets. Other
deferred tax assets are recognised only to the extent there is
reasonable certainty of realisation in future
m) Earnings per Share (EPS) :
Basic and Dilutee earning per shares are calculated by dividing the net
profit or loss for the period attributable to the equity share holders
by the weighted average number of equity shares outstanding during the
period
n) Miscellaneous Expenditure :
Expenses incurred in connection with further issue of share capital are
being amortised in three equal instalments.
o) GDRIFCCB Issue :
Expenses incurred in connection with the issue of GDR/FCCB have been
charged with Securities Premium Account as permitted by section 78 of
the Companies Act 1956 Premium payable on redemption of FCCB is
provided over the life of the bonds from Securities Premium Account On
conversion of the bonds in equity the provision for the redemption
premium is reversed
Mar 31, 2000
A) Accounting Convention:
The accounts are prepared under the historical cost convention and
materially comply with the mandatory accounting standards.
b) Fixed Assets:
Fixed Assets are stated at historical cost including directly
attributable costs of bringing the assets to their working condition.
c) Depreciation :
Depreciation is provided on fixed assets on straight line method in
accordance with the rates prescribed in Schedule XIV of the Companies
Act, 1956 on pro-rata basis.
d) Investments :
All Investments are stated at cost.
e) Inventories:
Inventories are valued as under:
Raw Materials and packing materials at Cost on FIFO basis.
Stock-in-process at net adjusted selling price method.
Finished manufactured goods at net adjusted selling price method.
Finished traded goods (domestic) at Cost on FIFO basis.
Finished traded goods (imported) at net adjusted selling price method.
f) Revenue Recognition:
Sales of products are recognised when the products are shipped.
Revenue/Income and Cost/ Expenditure are generally accounted for on
accrual basis. However, Gratuity, Leave Encashment and certain periodic
payments such as Rates & Taxes and Insurance are accounted for on cash
basis.
g) Miscellaneous Expenditure:
Preliminary expenses and expenses incurred on public issue of equity
shares are being amortised in ten equal instalments.
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