Mar 31, 2015
1. BASIS OF ACCOUNTING
The Financial statements are prepared on the basis of historical cost
convention based on the accrual concept and in accordance with
applicable Accounting Standards referred under section 211 (3C) of the
Companies Act, 1956. The accounting is on the basis of going concern
concept.
Income and expenditure are recongnized and accounted on accrual basis.
Revenue for sale transaction is recognized as and when the property in
the goods sold is transferred to the buyer for a definite
consideration.
2. CHANGES IN ACCOUNTING POLICY
During the year ended 31st March 2013, the Revised Schedule VI notified
under the Company's Act 1956, has become applicable to the Company for
preparation and presentation of financial statements. The adoption of
Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statement. However, it
has significant impact on the presentation and disclosure of financial
statements. The company has also reclassified the previous year
figurers.
3. USE OF ESTIMATES
The preparation of Financial statement requires estimates and
assumption 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 reported period. Difference
between the actual results and estimates are recognized in the period
in which results are known/materizlied.
4. INVENTORIES
Inventories are valued as under (As Furnished, valued and certified by
the Management)
i)Raw Material - At Identified Cost
i) Raw Materials obsolete - At lower of identified cost or realizable
value
ii) Process Stock - At Average Cost
iii) Finished Goods - At Lower of Cost or Net realizable value
iv) Waste - At Net Realisable value
v) Stores, Consumables & Spares - At Weighted Average cost
5. FIXED ASSETS
Fixed Assets are stated at cost and includes all expenditure of Capital
nature including the cost of borrowings and net of Cenvat Credit
wherever applicable. The preoperative expenses and the loss during that
production of new units are capitalised as Fixed Assets wherever
applicable.
6. DEPRECIATION
Depreciation has been provided on Straight Line Method in accordance
with the rates specified under schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on pro- rata
basis with reference to the date of installation and period of use. In
respect of assets up to Rs.5000/- each, the policy of the Company is to
charge 100% depreciation in the year in which such assets are installed
or put to use.
7. IMPAIRMENTS OF ASSETS
The Company has internal system to access their impairment of assets.
Appropriate disclosure on material impairment of losses and their
treatment in profit and loss account, classes of assets and nature of
impairment will be made during the period in which the impairment is
recognized.
8. INVESTMENTS
Investments are meant to be long term investments and are stated at
cost. Diminution in the value of investments, other than temporary in
nature, are provided for.
9. EMPLOYEE RETIREMENT BENEFITS
i) Defined Benefit Plan
The Company has taken out a Master policy with LIC of India Under the
"Cash Accumulation Scheme'' to cover the gratuity liabilities of the
Company. The amount charged to Profit and Loss A/c is recognized at the
present value of the amount payable determined using actuarial
valuation techniques.
ii) Company's Contribution paid/payable during the year towards
Provident Fund Scheme and Employee State Insurance are recognized in
the Profit and Loss Account.
10. FOREIGN CURRENCY TRANSACTIONS
i) Transactions arising in foreign currency for import of raw
materials, spares and fixed assets andfor exports during the year are
converted at exchange rates prevailing on the date of transaction.
ii) Liabilities payable in foreign currencies as on the date of the
Balance sheet are restated at year end exchange rate in such cases
where the fluctuations results in losses or at the rates at which
foreign currency forwarded covers have been obtained.Ail exchange
differences arising from conversion specific borrowings and other
liabilities attributable to the fixed assets, which are capitalized.
11.INTEREST ON BORROWINGS
Borrowing cost is charged to the Profit and Loss Account for the year
in which is incurred except for capital assets which is capitalised
till the date of assets is put to commercial use.
12. INTEREST UNDER TUF SCHEME
Certain term loans of the company have been sanctioned under the TUF
scheme of the Govt., of India. Under this scheme, an interest subsidy @
5% p.a is given by the Government on the interest paid by the company
on its term loans which is refunded quarterly after TUF claim is
lodged. This refund is accounted for on mercantile basis.
13. TAXES ON INCOME
a. Deferred tax is recognized, subject to consideration of prudence on
all timing differences between taxable income and accounting income
that originate in one period and are capable of being reversed in one
or more subsequent periods. The accumulated deffered tax liability is
adjusted by applying applicable tax rates under relevant tax lawas.
b. Minimum alternative Tax (MAT) credit is recognized as on asset only
when and to the extent there is convincing evidence that the company
will pay normal income tax during the specified period. MAT credit
becomes eligible to be recognized as an asset in accordance with the
recommendation contained in the Guidance Note issued by the institute
of Chartered Accountant of India, the said asset is created by way of
credit to the Profit and Loss Account and shown as MAT credit
entitlement. The Company reviews the same at each balances sheet date
and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.
14. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes.
Mar 31, 2014
1. BASIS OF ACCOUNTING
The Financial statements are prepared on the basis of historical cost
convention based on the accrual concept and in accordance with
applicable Accounting Standards referred under section 211 (3C) of the
Companies Act, 1956. The accounting is on the basis of going concern
concept.
Income and expenditure are recongnized and accounted on accrual basis.
Revenue for sale transaction is recognized as and when the property in
the goods sold is transferred to the buyer for a definite
consideration.
2. CHANGES IN ACCOUNTING POLICY
During the year ended 31s March 2013, the Revised Schedule VI notified
under the Company''s Act 1956, has become applicable to the Company for
preparation and presentation of financial statements. The adoption of
Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statement. However, it
has significant impact on the presentation and disclosure of financial
statements. The company has also reclassified the previous year
figurers.
3. USE OF ESTIMATES
The preparation of Financial statement requires estimates and
assumption 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 reported period. Difference
between the actual results and estimates are recognized in the period
in which results are known/materizlied.
4. INVENTORIES
Inventories are valued as under (As Furnished, valued and certified
by the Management)
i)Raw Material - At Identified Cost
i)Raw Materials obsolete - At lower of identified cost or realizable
value
ii) Process Stock - At Average Cost
iii) Finished Goods - At Lower of Cost or Net realizable value
iv) Waste - At Net Realisable value
v) Stores, Consumables & Spares - At Weighted Average cost
5. FIXED ASSETS
Fixed Assets are stated at cost and includes all expenditure of Capital
nature including the cost of borrowings and net of Cenvat Credit
wherever applicable. The preoperative expenses and the loss during that
production of new units are capitalised as Fixed Assets wherever
applicable.
6. DEPRECIATION
Depreciation has been provided on Straight Line Method in accordance
with the rates specified under schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on pro- rata
basis with reference to the date of installation and period of use. In
respect of assets up to Rs.5000/- each, the policy of the Company is to
charge 100% depreciation in the year in which such assets are installed
or put to use.
7. IMPAIRMENTS OF ASSETS
The Company has internal system to access their impairment of assets.
Appropriate disclosure on material impairment of losses and their
treatment in profit and loss account, classes of assets and nature of
impairment will be made during the period in which the impairment is
recognized.
8. INVESTMENTS
Investments are meant to be long term investments and are stated at
cost. Diminution in the value of investments, other than temporary in
nature, are provided for.
9. EMPLOYEE RETIREMENT BENEFITS i) Defined Benefit Plan
The Company has taken out a Master policy with LIC of India Under the
"Cash Accumulation Scheme" to cover the gratuity liabilities of the
Company. The amount charged to Profit and Loss A/c is recognized at the
present value of the amount payable determined using actuarial
valuation techniques.
ii) Company''s Contribution paid/payable during the year towards
Provident Fund Scheme and Employee State Insurance are recognized in
the Profit and Loss Account.
10. FOREIGN CURRENCY TRANSACTIONS
i) Transactions arising in foreign currency for import of raw
materials, spares and fixed assets and for exports during the year are
converted at exchange rates prevailing on the date of transaction.
ii) Liabilities payable in foreign currencies as on the date of the
Balance sheet are restated at year end exchange rate in such cases
where the fluctuations results in losses or at the rates at which
foreign currency forwarded covers have been obtained.AII exchange
differences arising from conversion specific borrowings and other
liabilities attributable to the fixed assets, which are capitalized.
11.INTEREST ON BORROWINGS
Borrowing cost is charged to the Profit and Loss Account for the year
in which is incurred except for capital assets which is capitalised
till the date of assets is put to commercial use.
12. INTEREST UNDER TUF SCHEME
Certain term loans of the company have been sanctioned under the TUF
scheme of the Govt., of India. Under this scheme, an interest subsidy @
5% p.a is given by the Government on the interest paid by the company
on its term loans which is refunded quarterly after TUF claim is
lodged. This refund is accounted for on mercantile basis.
13. TAXES ON INCOME
a. Deferred tax is recognized, subject to consideration of prudence on
all timing differences between taxable income and accounting income
that originate in one period and are capable of being reversed in one
or more subsequent periods. The accumulated deffered tax liability is
adjusted by applying applicable tax rates under relevant tax lawas.
b. Minimum alternative Tax (MAT) credit is recognized as on asset only
when and to the extent there is convincing evidence that the company
will pay normal income tax during the specified period. MAT credit
becomes eligible to be recognized as an asset in accordance with the
recommendation contained in the Guidance Note issued by the institute
of Chartered Accountant of India, the said asset is created by way of
credit to the Profit and Loss Account and shown as MAT credit
entitlement. The Company reviews the same at each balances sheet date
and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.
14. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes.
Mar 31, 2013
1. BASIS OF ACCOUNTING
The Financial statements are prepared on the basis of historical cost
convention based on the accrual concept and in accordance with
applicable Accounting Standards referred under section 211 (3C) of the
Companies Act, 1956. The accounting is on the basis of going concern
concept.
Income and expenditure are recognized and accounted on accrual basis.
Revenue for sale transaction is recognized as and when the property in
the goods sold is transferred to the buyer for a definite
consideration.
2. CHANGES IN ACCOUNT ING POLICY
During the year ended 31s March 2013, the Revised Schedule VI notified
under the Company''s Act 1956, has become applicable to the Company
for preparation and presentation of financial statements. The adoption
of Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statement. However, it
has significant impact on the presentation and disclosure of financial
statements. The company has also reclassified the previous year
figurers.
3. USE OF ESTIMATES
The preparation of Financial statement requires estimates and
assumption 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 reported period. Difference
between the actual results and estimates are recognized in the period
in which results are known/materialized.
4. INVENTORIES
Inventories are valued as under (As Furnished, valued and certified by
the Management)
i)Raw Material - At Identified Cost
i)Raw Materials obsolete - At lower of identified cost or realizable
value
ii) Process Stock - At Average Cost
iii) Finished Goods - At Lower of Cost or Net realizable value
iv) Waste - At Net Realizable value
v) Stores, Consumables & Spares - At Weighted Average cost
5. FIXED ASSETS
Fixed Assets are stated at cost and includes all expenditure of Capital
nature including the cost of borrowings and net of Convert Credit
wherever applicable. The preoperative expenses and the loss during that
production of new units are capitalized as Fixed Assets wherever
applicable.
6. DEPRECIATION
Depreciation has been provided on Straight Line Method in accordance
with the rates specified under schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on prorata basis
with reference to the date of installation and period of use. In
respect of assets up to Rs.5000/- each, the policy of the Company is to
charge 100% depreciation in the year in which such assets are installed
or put to use.
7. IMPAIRMENTS OF ASSETS
The Company has internal system to access their impairment of assets.
Appropriate disclosure on material impairment of losses and their
treatment in profit and loss account, classes of assets and nature of
impairment will be made during the period in which the impairment is
recognized.
8. INVESTMENTS
Investments are meant to be long term investments and are stated at
cost. Diminution in the value of investments, other than temporary in
nature, are provided for.
9. EMPLOYEE RETIREMENT BENEFITS
i) Defined Benefit Plan
The Company has taken out a Master policy with LIC of India Under the
"Cash Accumulation Scheme" to cover the gratuity liabilities of the
Company. The amount charged to Profit and Loss A/c is recognized at the
present value of the amount payable determined using actuarial
valuation techniques.
ii) Company''s Contribution paid/payable during the year towards
Provident Fund Scheme and Employee State Insurance are recognized in
the Profit and Loss Account.
10. FOREIGN CURRENCY TRANSACTIONS
i) Transactions arising in foreign currency for import of raw
materials, spares and fixed assets and for exports during the year are
converted at exchange rates prevailing on the date of transaction.
ii) Liabilities payable in foreign currencies as on the date of the
Balance sheet are restated at year end exchange rate in such cases
where the fluctuations results in losses or at the rates at which
foreign currency forwarded covers have been obtained. All exchange
differences arising from conversion specific borrowings and other
liabilities attributable to the fixed assets, which are capitalized.
11.INTEREST ON BORROWINGS
Borrowing cost is charge to the Profit and Loss Account for the year in
which is incurred except for capital assets which is capitalized till
the date of assets is put to commercial use.
12. INTEREST UNDER TUF SCHEME
Certain term loans of the company have been sanctioned under the TUF
scheme of the Govt., of India. Under this scheme, an interest subsidy @
5% p.a is given by the Government on the interest paid by the company
on its term loans which is refunded quarterly after TUF claim is
lodged. This refund is accounted for on mercantile basis.
13. TAXES ON INCOME
a. Deferred tax is recognized, subject to consideration of prudence on
all timing differences between taxable income and accounting income
that originate in one period and are capable of being reversed in one
or more subsequent periods. The accumulated differed tax liability is
adjusted by applying applicable tax rates under relevant tax lawas.
b. Minimum alternative Tax (MAT) credit is recognized as on asset only
when and to the extent there is convincing evidence that the company
will pay normal income tax during the specified period. MAT credit
becomes eligible to be recognized as an asset in accordance with the
recommendation contained in the Guidance Note issued by the institute
of Chartered Accountant of India, the said asset is created by way of
credit to the Profit and Loss Account and shown as MAT credit
entitlement. The Company reviews the same at each balances sheet date
and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.
14. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes.
Mar 31, 2012
1. BASIS OF ACCOUNTING
i) The Financial statements are prepared on the basis of historical
cost convention based on the accrual concept and in accordance with
applicable Accounting Standards referred under section 211 (3C) of the
Companies Act, 1956. The accounting is on the basis of going concern
concept.
ii) Income and expenditure are recongnized and accounted on accrual
basis. Revenue for sale transaction is recognized as and when the
property in the goods sold is transferred to the buyer for a definite
consideration.
2. CHANGES IN ACCOUNTING POLICY
During the year ended 31st March 2012, the Revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the Company for
preparation and presentation of financial statements. The adoption of
Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on the presentation and disclosure of
financial statements. The company has also reclassified the previous
year figurers.
3. USE OF ESTIMATES
The preparation of Financial statement requires estimates and
assumption 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 reported period. Difference
between the actual results and estimates are recognized in the period
in which results are known/materizlied.
4. INVENTORIES
Inventories are valued as under (As Furnished, valued and certified by
the Management)
i) Raw Material - At Identified Cost
i) Raw Materials obsolete - At lower of identified cost or realizable
value
ii) Process Stock - At Average Cost
iii) Finished Goods - At Lower of Cost or Net realizable value
iv) Waste - At Net Realisable value
v) Stores, Consumables & Spares - At Weighted Average cost
5. FIXED ASSETS
Fixed Assets are stated at cost and includes all expenditure of Capital
nature including the cost of borrowings and net of Cenvat Credit
wherever applicable. The preoperative expenses and the loss during that
production of new units are capitalised as Fixed Assets wherever
applicable.
6. DEPRECIATION
Depreciation has been provided on Straight Line Method in accordance
with the rates specified under schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on pro-rata basis
with reference to the date of installation and period of use. In
respect of assets up to Rs.5000/- each, the policy of the Company is to
charge 100% depreciation in the year in which such assets are installed
or put to use.
7. IMPAIRMENTS OF ASSETS
The Company has internal system to access their impairment of assets.
Appropriate disclosure on material impairment of losses and their
treatment in profit and loss account, classes of assets and nature of
impairment will be made during the period in which the impairment is
recognized.
8. INVESTMENTS
Investments are meant to be long term investments and are stated at
cost. Diminution in the value of investments, other than temporary in
nature, are provided for.
9. EMPLOYEE RETIREMENT BENEFITS
i) Defined Benefit Plan
The Company has taken out a Master policy with LIC of India Under the
ÃCash Accumulation Schemeà to cover the gratuity liabilities of the
Company. The amount charged to Profit and Loss A/c is recognized at the
present value of the amount payable determined using actuarial
valuation techniques.
ii) CompanyÃs Contribution paid/payable during the year towards
Provident Fund Scheme and Employee State Insurance are recognized in
the Profit and Loss Account.
10. FOREIGN CURRENCY TRANSACTIONS
i) Transactions arising in foreign currency for import of raw
materials, spares and fixed assets and for exports during the
year are converted at exchange rates prevailing on the date of
transaction.
ii) Liabilities payable in foreign currencies as on the date of the
Balance sheet are restated at year end exchange rate in such cases
where the fluctuations results in losses or at the rates at which
foreign currency forwarded covers have been obtained. All exchange
differences arising from conversion specific borrowings and other
liabilities attributable to the fixed assets, which are capitalized.
11.INTEREST ON BORROWINGS
Borrowing cost is charge to the Profit and Loss Account for the year in
which is incurred except for capital assets which is capitalised till
the date of assets is put to commercial use.
12. INTEREST UNDER TUF SCHEME
Certain term loans of the company have been sanctioned under the TUF
scheme of the Govt., of India. Under this scheme, an interest subsidy @
5% p.a is given by the Government on the interest paid by the company
on its term loans which is refunded quarterly after TUF claim is
lodged. This refund is accounted for on mercantile basis.
13. TAXES ON INCOME
a. Deferred tax is recognized, subject to consideration of prudence on
all timing differences between taxable income and accounting income
that originate in one period and are capable of being reversed in one
or more subsequent periods. The accumulated deffered tax liability is
adjusted by applying applicable tax rates under relevant tax lawas.
b. Minimum alternative Tax (MAT) credit is recognized as on asset only
when and to the extent there is convincing evidence that the company
will pay normal income tax during the specified period. MAT credit
becomes eligible to be recognized as an asset in accordance with the
recommendation contained in the Guidance Note issued by the institute
of Chartered Accountant of India, the said asset is created by way of
credit to the Profit and Loss Account and shown as MAT credit
entitlement. The Company reviews the same at each balances sheet date
and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.
14. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes.
15. GOVERNMENT GRANTS Ã CAPITAL SUBSIDY
In respect of Capital Subsidy on Specific Machinery from Government,
the Company has opted the second option spelt out in AS 12 Ã Accounting
for Government Grants, which is the Ãincome Approachà due to which the
income is recognized in the Profit & Loss Account. Hithereto the above
subsidy is recognized as income equally over 10 years. From the current
year onwards the income is rescheduled and recognized over a total
period of five years.
Mar 31, 2010
1. BASIS OF ACCOUNTING
i) The financial statements are prepared on the basis of historical
cost convention based on the accrual concept and in accordance with
applicable Accounting Standards referred under Section 211 (3C) of the
Companies Act, 1956. The accounting is on the basis of going concern
concept.
ii) Income and expenditure are recongnized and accounted on accrual
basis. Revenue for sale transaction is recognized as and when the
property in the goods sold is transferred to the buyer for a definite
consideration.
2. USE OF ESTIMATES
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilites on the date of the financial statements and the reported
amount of revenues and expenses during the reported period. Difference
between the actual results and estimates are recognised in the period
in which results are known/materialised.
3. INVENTORIES
Inventories are valued as under
(As Furnished, valued and certified by the Management) i) a. Raw
Materials - At Identified Cost
i) b. Raw Materials obsolete - At lower of identified
cost or Realisable value
ii) Process Stock - At Average Cost
iii) Finished goods - At Lower of Cost or Net
Realisable Value iv) Waste - At Net Realisable Value
v) Stores, Consumables and - At Weighted Average Spares
Cost
4. FIXED ASSETS
Fixed Assets are stated at cost and includes all expenditure of capital
nature including the cost of borrowings and net of Cenvat credit
wherever applicable. The preoperative expenses and the loss during
trial production of new units are capitalised as Fixed Assets wherever
applicable.
5. DEPRECIATION
Depreciation has been provided on Straight Line Method in accordance
with the rates specified under schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on pro-rata basis
with reference to the date of installation and period of use. In
respect of assets upto Rs. 5000/- each, the policy of the Company is to
charge 100% depreciation in the year in which such assets are installed
or put to use.
6. IMPAIRMENTS OF ASSETS
The Company has internal system to access their impairment of assets.
Appropriate disclosure on material impairment of losses and their
treatment in Profit & Loss Account, classes of assets and nature of
impairment will be made in the year in which the impairment is
recognised.
7. INVESTMENTS
Investments are meant to be long term investments and are stated at
cost. Diminution in the value of investments, other than temporary in
nature, are provided for.
8. EMPLOYEE RETIREMENT BENEFITS
a. Defined Benefit Plan
The Company has taken out a Master policy with LIC of India under the
"Cash Accumulation Scheme" to cover the gratuity liabilities of the
Company. The premium paid / payable to LIC on the said policy is
charged to Profit & Loss Account of the year.
b. Defined Contribution Plan
Companys Contribution paid/paybale during the year towards Provident
Fund Scheme and Employee State Insurance are recognized in the Profit
and Loss Account.
9. FOREIGN CURRENCY TRANSACTIONS
i) Transactions arising in foreign currency for import of raw
materials, spares and fixed assets and for exports during the year are
converted at exchange rates prevailing on the date of transaction.
ii) Liabilities payable in foreign currencies as on the date of the
Balance Sheet are restated at year end exchange rates in such cases
where the fluctuations result in losses or at the rates at which
foreign currency forward covers have been obtained. All exchange
differences arising from conversion are included in the Profit and Loss
Account except relating to specific borrowings and other liabilities
attributable to the fixed assets, which are capitalised.
10. INTEREST ON BORROWINGS
Borrowing cost is charged to the Profit and Loss Account for the year
in which it is incurred except for capital assets which is capitalised
till the date the asset is put to commercial use.
11. INTEREST UNDER TUF SCHEME
Certain term loans of the company has been sanctioned under the TUF
scheme of the Govt, of India. Under this scheme, interest subsidy @5%
p.a. is given by the Government on the interest paid by the company on
its term loans which is refunded quarterly after TUF claim is lodged.
This refund is accounted for on merchantile basis and is treated as
revenue receipt except in such cases where the lending bankers have not
lodged any claim or having lodged, have not received any amount towards
claim, considering that our company is under CDR package, wherein a
holiday period for interest payment to lenders has been sanctioned.
12. TAXES ON INCOME
Deferred tax is recognized, subject to consideration of prudence on all
timing differences between taxable income and accounting income that
originate in one period and are capable of being reversed in one or
more subsequent periods. The accumulated deferred tax liability is
adjusted by applying applicable tax rates under relevent tax laws.
13. MISCELLANEOUS EXPENDITURE
Preliminary and Public Issue expenses are amortised over a period of 10
years.
14. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes.
15. INCOME-TAX
Minimum Alternative Tax(MAT) credit is recognized as an asset only when
and to the extent there is convincing evidence that the company will
pay normal income tax during the specified period. MAT credit becomes
eligibile to be recognized as an asset in accordance with the
recommendation contained in the Guidance Note issued by the Institute
of Chartered Accountants of India, the said asset is created by way of
credit to the Profit and Loss Account and shown as MAT credit
entitlement. The Company reviews the same at each balance sheet date
and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.
16. GOVERNMENT GRANTS - CAPITAL SUBSIDY
In respect of Capital Subsidy on Specific Machinery from Government,
the Company has opted the second option spelt out in AS 12 - Accounting
for Government Grants, which is the "Income Approach" due to which the
income is recognised in the Profit & Loss Account. The above subisdy is
recognised as income equally over 10 years being the period fixed by
the Board of Directors as the life of the Specific Asset. Balance is
being treated as Deffered Income .
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