Mar 31, 2015
Not Available
Mar 31, 2014
1.1 Basis of preparation of financial statements
These financial statements are prepared in accordance with Accountings
Standards. These financial statements comprises mandatory accounting
standards as prescribed by the ICAI, Companies (Accounting Standards)
Rules, 2006, the provisions of The Companies Act, 1956/ Companies Act,
2013 and guidelines issued by the Securities and Exchange Board of
India (SEBI). Accounting policies have been consistently applied except
where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
1.2 Use of estimates
The preparation of the financial statements in conformity with
Accounting Standards requires management to make estimates and
assumptions that affect the reported balances of assets and liabilities
and disclosures relating to contingent liabilities as at the date of
the financial statements and reported amounts of income and expenses
during the period. Examples of such estimates include computation of
percentage of completion which requires the Company to estimate the
efforts expended to date as a proportion of the total efforts to be
expended, provisions for doubtful debts, future obligations under
employee retirement benefit plans, income taxes, post-sales customer
support and the useful lives of fixed assets and intangible assets.
1.3 Revenue Recognition
Sales (domestic) are recognized on dispatch of products and are stated
net of returns, and are inclusive of Excise Duty and Sales Tax / VAT.
1.4 Provisions and contingent liabilities
Provision is recognized when the company has a present obligation as a
result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
1.5 Fixed assets:
Fixed assets are stated at cost of acquisition or construction,
including attributable interest and financial costs till such assets
are ready for its intended use, less accumulated depreciation,
impairment losses and specific grants received, if any.
1.6 Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the asset''s net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
Previously recognized impairment loss is further provided or reversed
depending on the changes in circumstances. -
1.7 Depreciation:
A) The company provides depreciation on plant & machinery, electrical
installations and laboratory equipment on straight line method and on
other assets on written down value method as per Schedule XIV of The
Companies Act,1956/ Companies Act, 2013.
B) The company provides depreciation as per provisions of Section
205(2)(b) of The Companies Act, 1956/ Companies Act, 2013, on straight
line method on the assets acquired upto 31st March 1987, at the rate
adopted till that date in accordance with circular No.1/86 dated 21st
may 1986 issued by the department of company affairs and on assets
acquired thereafter at the rates as per Schedule XIV of The Companies
Act,1956/ Companies Act, 2013.
1.8 Employee Benefits:
Defined contribution plan :
Company''s contribution paid/payable during the year towards Provident
Fund, Employees Pension Fund, ESIC and Labour Welfare fund being
charged to profit and loss account.
Defined benefit plan:
Company''s liability towards gratuity and leave encashment are based on
actuarial valuation using the projected unit credit method which
considers each period of service as giving rise to an additional unit
of benefit entitlement and measures each unit separately to build up
the final obligation. Past services are recognized on a straight line
basis over the average period until the amended benefits become vested.
Actuarial gain and losses are recognized immediately in the statement
of profit and loss account as income or expense.
1.9 Research and Development:
Revenue expenses relating to research and development activity is
charged to profit & loss account. Capital expenditure incurred for
research and development is capitalized.
1.10 Investments:
Long-term investments are carried at cost. However provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower.
1.11 Cash and cash equivalents
Cash and cash equivalents comprise cash and cash deposit with banks.
1.11 Cash flow statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Group are segregated.
1.12 Valuation of Inventories :
Inventories are valued at lower of costs or net realizable value. Cost
is ascertained in respect of:-
i) Raw materials on first-in-first-out basis.
ii) Stores and spares on first-in-first-out basis
iii) Material in progress on the basis of cost of raw materials issued,
direct labour and appropriate factory overheads and with reasonable
estimates, where necessary, upto the stage of completion.
iv) Finished goods on the basis of cost of raw material, direct labour
and appropriate factory overheads and with reasonable estimates, where
necessary.
1.13 Taxation:
Income tax expense comprises of current tax, deferred tax charge or
credit and current tax is made with reference to taxable income
computed for the accounting year, for which the financial statements
are prepared by applying the tax rates as applicable. Deferred tax
charge reflects the impact of current year timing differences between
taxable income and accounting income. The deferred tax charge or credit
is recognized using prevailing enacted or substantively enacted tax
rates. Deferred tax assets are recognized only to the extent that there
is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits. Deferred tax assets /
liabilities are reviewed as at each Balance Sheet date based on
developments during the year and available case laws, to reassess
realization / liabilities.
Mar 31, 2013
1.1 Basis of preparation of financial statements
These financial statements are prepared in accordance with Accountings
Standards. These financial statements comprises mandatory accounting
standards as prescribed by the ICAI, Companies (Accounting Standards)
Rules, 2006, the provisions of the Companies Act, 1956 and guidelines
issued by the Securities and Exchange Board of India (SEBI). Accounting
policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto
in use.
1.2 Use of estimates
The preparation of the financial statements in conformity with
Accounting Standards requires management to make estimates and
assumptions that affect the reported balances of assets and liabilities
and disclosures relating to contingent liabilities as at the date of
the financial statements and reported amounts of income .and expenses
during the period. Examples of such estimates include computation of
percentage of completion which requires the Company to estimate the
efforts expended to date as a proportion of the total efforts to be
expended, provisions for doubtful debts, future obligations under
employee retirement benefit plans, income taxes, post-sales customer
support and the useful lives of fixed assets and intangible assets.
1.3 Revenue Recognition
Sales (domestic) are recognized On dispatch of products and are stated
net of returns, and are inclusive of Excise Duty and Sales Tax / VAT.
1.4 Provisions and contingent liabilities
Provision is recognized when the company has a present obligation as a
result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
1.5 Fixed assets:
Fixed assets are stated at post of acquisition or construction,
including attributable interest and financial costs till such assets
are ready for its intended use, less accumulated depreciation,
impairment losses and specific grants received, if any.
1.6 Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on ¦ internal /
external factors. An impairment loss will be recognized wherever the
carrying amount of an asset exceeds its estimated recoverable amount.
The recoverable amount is greater of the asset''s net selling price
and value in use. In assessing the value in use, the estimated future
cash flows are discounted to the present value using the weighted
average cost of capital. After impairment, depreciation is provided on
the revised carrying amount of the assets over its remaining useful
life. Previously recognized impairment loss is further provided or
reversed depending on the changes in circumstances. v
1.7 Depreciation:
A) The company provides depreciation on plant & machinery, electrical
installations and laboratory equipment on straight line method and on
other assets on written down value method as per Schedule XIV of the
Companies Act, 1956.
B) The company provides depreciation as per provisions of Section
205(2)(b) of the Companies Act, 1956 on straight line method on the
assets acquired up to 31st March 1987, at the rate adopted till that
date in accordance with circular No.1/86 dated 21st may 1986 issued by
the department of company affairs and on assets acquired thereafter at
the rates as per Schedule XIV of the Companies Act, 1956.
1.8 Employee Benefits: .
Defined contribution plan : ''
Company''s contribution paid/payable during the year towards Provident
Fund, Employees Pension Fund, ESIC and Labour Welfare fund being
charged to profit and loss account.
Defined benefit plan:
Company''s liability towards gratuity and leave encashment are based
on actuarial valuation using the projected unit credit method which
considers each period of service as giving rise to an additional unit
of benefit entitlement and measures each unit separately to build up
the final obligation. Past services are recognized on a straight line
basis over the average period until the amended benefits become vested.
Actuarial gain and losses are recognized immediately in the statement
of profit and loss account as income or expense.
1.9 Research and Development: ,
Revenue expenses relating to research and development activity is
charged to profit & loss account. Capital expenditure incurred for
research and development is capitalized.
1.10 Investments: '' _
Long-term investments are carried at cost. However provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower.
1.11 Cash and cash equivalents
Cash and cash equivalents comprise cash and cash deposit with banks.
1.11 Cash flow statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Group are segregated. ;
1.12 Valuation of Inventories : .
Inventories are valued at lower of costs or net realizable value. Cost
is ascertained in respect of:-
i) Raw materials on first-in-first-out basis.
ii) Stores and spares on first-in-first-out basis
iii) Material in progress on the basis of cost of raw materials issued,
direct labour and appropriate factory overheads and with reasonable
estimates, where necessary, up to the stage of completion.
iv) Finished goods on the basis of cost of raw material, direct labour
and appropriate factory overheads and with reasonable estimates, where
necessary.
1.13 Taxation:
Income tax expense comprises of current tax, deferred tax charge or
credit and current tax is made with reference to taxable income
computed for the accounting year, for which the financial statements
are prepared by applying the tax rates as applicable. Deferred tax
charge reflects the impact of current year timing differences between
taxable income and accounting income. The deferred tax charge or credit
is'' recognized using prevailing enacted or substantively enacted tax
rates. Deferred tax assets are recognized only to the extent that there
is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits. Deferred tax assets /
liabilities are reviewed as at each Balance Sheet date based on
developments during the year and available case laws, to reassess
realization / liabilities.
Mar 31, 2012
1.1 Basis of preparation of financial statements
These financial statements are prepared in accordance with Accountings
Standards. These financial statements comprises mandatory accounting
standards as prescribed by the ICAI, Companies (Accounting Standards)
Rules, 2006, the provisions of the Companies Act, 1956 and guidelines
issued by the Securities and Exchange Board of India (SEBI). Accounting
policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto
in use.
1.2 Use of estimates
The preparation of the financial statements in conformity with
Accounting Standards requires management to make estimates and
assumptions that affect the reported balances of assets and liabilities
and disclosures relating to contingent liabilities as at the date of
the financial statements and reported amounts of income and expenses
during the period. Examples of such estimates include computation of
percentage of completion which requires the Company to estimate the
efforts expended to date as a proportion of the total efforts to be
expended, provisions for doubtful debts, future obligations under
employee retirement benefit plans, income taxes, post-sales customer
support and the useful lives of fixed assets and intangible assets.
1.3 Revenue Recognition
Sales (domestic) are recognized on dispatch of products and are stated
net of returns, and are inclusive of Excise Duty and Sales Tax / VAT.
1.4 Provisions and contingent liabilities
Provision is recognized when the company has a present obligation as a
result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote. .
1.5 Fixed assets:
Fixed assets are stated at cost of acquisition or construction,
including attributable interest and financial costs till such assets
are ready for its intended use, less accumulated depreciation,
impairment losses and specific grants received, if any. <
1.6 Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the asset's net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
Previously recognized impairment loss is further provided or reversed
depending on the changes in circumstances.
1.7 Depreciation:
A) The company provides depreciation on plant & machinery, electrical
installations and laboratory equipment on straight line method and on
other assets on written down value method as per Schedule XIV of the
Companies Act, 1956.
B) The company provides depreciation as per provisions of Section
205(2)(b) of the Companies Act, 1956 on straight line method on the
assets acquired upto 31st March 1987, at the rate adopted till that
date in accordance with circular No. 1/86 dated 21st May 1986 issued by
the department of company affairs and on assets acquired thereafter at
the rates as per Schedule XIV of the Companies Act, 1956.
1.8 Employee Benefits:
Defined contribution plan :
Company's contribution paid/payable during the year towards Provident
Fund, Employees Pension Fund, ESIC and Labour Welfare fund being
charged to profit and loss account.
Defined benefit plan:
Company's liability towards gratuity and leave encashment are based
on actuarial valuation using the projected unit credit method which
considers each period of service as giving rise to.an additional unit
of benefit entitlement and measures each unit separately to build up
the final obligation. Past services are recognized on a straight line
basis over the average period until the amended benefits become vested.
Actuarial gain and losses are recognized immediately in the statement
of profit and loss account as income or expense.
1.9 Research and Development:
Revenue expenses relating to research and development activity is
charged to profit & loss account. Capital expenditure incurred for
research and development is capitalized.
1.10 Investments:
Long-term investments are carried at cost. However provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower.
1.11 Cash and cash equivalents
Cash and cash equivalents comprise cash and cash deposit with banks.
1.12 Cash flow statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Group are segregated.
1.13 Valuation of Inventories :
Inventories are valued at lower of costs or net realizable value. Cost
is ascertained in respect of:-
i) Raw materials on first-in-first-out basis.
' ii) Stores and spares on first-in-first-out basis
iii) Material in progress on the basis of cost of raw materials issued,
direct labour and appropriate factory overheads and with reasonable
estimates, where necessary, upto the stage of completion.
iv) Finished goods on the basis of cost of raw material, direct labour
and appropriate factory overheads and with reasonable estimates, where
necessary.
1.14 Taxation:
Income tax expense comprises of current tax, deferred tax charge or
credit and current tax is made with reference to taxable income
computed for the accounting year, for which the financial statements
are prepared by applying the tax rates as applicable. Deferred tax
charge reflects the impact of current year timing differences between
taxable income and accounting income. The deferred tax charge or credit
is recognized using prevailing enacted or substantively enacted tax
rates. Deferred tax assets are recognized only to the extent that there
is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits. Deferred tax assets /
liabilities are reviewed as at each Balance Sheet date based on
developments during the year and available case laws, to reassess
realization / liabilities.
Mar 31, 2011
I) Fixed assets:
Fixed assets are stated at cost of acquisition or construction,
including attributable interest and financial costs till such assets
are ready for its intended use, less accumulated depreciation,
impairment losses and specific grants received, if any.
ii) Depreciation:
A) The company provides depreciation on plant & machinery, electrical
installations and laboratory equipment on straight line method and on
other assets on written down value method as per Schedule XIV of the
Companies Act, 1956.
B) The company provides depreciation as per provisions of Section
205(2)(b) of the Companies Act, 1956 on straight line method on the
assets acquired upto 31st March 1987, at the rate adopted till that
date in accordance with circular no.1/86 dated 21st May 1986 issued by
the Department of Company Affairs and on assets acquired there after at
the rates as per Schedule XIV of the Companies Act, 1956.
iii) Sales:
Sales (domestic) are recognized on dispatch of products and are stated
net of returns, and are inclusive of Excise Duty and Sales Tax / VAT.
iv) Income From Construction:
Real estate income is accounted for, on completion of
construction/sale.
v) Research and Development:
Revenue expenses relating to research and development activity is
charged to profit & loss account. Capital expenditure incurred for
research and development is capitalised.
vi) Investments:
Long-term investments are carried at cost. However provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower.
vii) Valuation of Inventories :
Inventories are valued at lower of costs and net realizable value. Cost
is ascertained in respect of:-
i) Raw materials on first-in-first-out basis.
ii) Stores, spares and colour chemicals on first-in-first-out basis.
iii) Material in progress on the basis of cost of raw materials issued,
direct labour and appropriate factory overheads and with reasonable
estimates, where necessary, upto the stage of completion.
iv) Finished goods on the basis of cost of raw material, direct labour
and appropriate factory overheads and with reasonable estimates, where
necessary.
v) Construction work in progress at the costs incurred upto the stage
of completion.
vi) Flats and shops at the construction costs and related overheads.
viii) Employee Benefits:
a. Defined contribution plan :
Companys contribution paid/payable during the year towards Provident
Fund, Employees Pension Fund, ESIC and Labour Welfare fund being
charged to profit and loss account.
b. Defined benefit plan:
Companys liability towards gratuity and leave encashment are based on
actuarial valuation using the projected unit credit method which
considers each period of service as giving rise to an additional unit
of benefit entitlement and measures each unit separately to build up
the final obligation. Past services are recognized on a straight line
basis over the average period until the amended benefits become vested.
Actuarial gain and losses are recognized immediately in the statement
of profit and loss account as income or expense.
ix) Taxation:
Income tax expense comprises of current tax, deferred tax charge or
credit and fringe benefit tax. Provision for current tax is made with
reference to taxable income computed for the accounting year, for which
the financial statements are prepared by applying the tax rates as
applicable. Deferred tax charge reflects the impact of current "year
timing differences between taxable income and accounting income. The
deferred tax charge or credit is recognized using prevailing enacted or
substantively enacted tax rates. Deferred tax assets are recognized
only to
the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. If the company has unabsorbed depreciation or carry
forward tax losses, deferred tax assets are recognized only if there is
virtual certainty supported by convincing evidence that such deferred
tax assets can be realized against future taxable profits. Deferred tax
assets / liabilities are reviewed as at each Balance Sheet date based
on developments during the year and available case laws, to reassess
realization / liabilities.
x) Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
Previously recognized impairment loss is further provided or reversed
depending on the changes in circumstances.
xi) Contingencies / Provisions:
Provision is recognized when the company has a present obligation as a
result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
Mar 31, 2010
I) Fixed assets:
Fixed assets are stated at cost of acquisition or construction,
including attributable interest and financial costs till such assets
are ready for its intended use, less accumulated depreciation,
impairment losses and specific grants received, if any.
II) Depreciation:
A) The company provides depreciation on plant & machinery, electrical
installations and laboratory equipment on straight line method and on
other assets on written down value method as per Schedule XIV of the
Companies Act, 1956.
B) The company provides depreciation as per provisions of Section
205(2)(b) of the Companies Act, 1956 on straight line method on the
assets acquired upto 31st march 1987, at the rate adopted till that
date in accordance with circular no. 1/86 dated 21st may 1986 issued by
the department of company affairs and on assets acquired there after at
the rates as per Schedule XIV of the Companies Act, 19S6.
iii) Sales:
Sales (domestic) are recognized on dispatch of products and are stated
net of returns, and are inclusive of Excise Duty and Sales Tax / VAT.
iv) Income From Construction:
Real estate income is accounted for, on completion of
construction/sale.
v) Research and Development:
Revenue expenses relating to research and development activity is
charged to profit & loss account. Capital expenditure incurred for
research and development is capitalised.
vi) Investments:
Long-term investments are carried at cost. However provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower.
vil) Valuation of Inventories :
Inventories are valued at lower of costs and net realizable value. Cost
is ascertained in respect of:-
i) Raw materials on first-in-first-out basis.
ii) Stores, spares and colour chemicals on first-in-first-out basis.
iii) Material in progress on the basis of cost of raw materials issued,
direct labour and appropriate factory overheads and with reasonable
estimates, where necessary, upto the stage of completion.
iv) Finished goods on the basis of cost of raw material, direct labour
and appropriate factory overheads and with reasonable estimates, where
necessary.
v) Construction work in progress at the costs incurred upto the stage
of completion.
vi) Flats and shops at the construction costs and related overheads.
viii) Employee Benefits:
a. Defined contribution plan:
Companys contribution paid/payable during the year towards Provident
Fund, Employees Pension Fund, ESIC and Labour Welfare fund being
charged to profit and loss account.
b. Defined benefit plan:
Companys liability towards gratuity and leave encashment are based on
actuarial valuation using the projected unit credit method which
considers each period of service as giving rise to an additional unit
of benefit entitlement and measures each unit separately to build up
the final obligation. Past services are recognized on a straight line
basis over the average period until the amended benefits become vested.
Actuarial gain and losses are recognized immediately in the statement
of profit and loss account as income or expense.
ix) Taxation:
Income tax expense comprises of current tax, deferred tax charge or
credit and fringe benefit tax Provision for current tax is made with
reference to taxable income computed for the accounting year, for which
the financial statements are prepared by applying the tax rates as
applicable. Deferred tax charge reflects the impact of current year
timing differences between taxable income and accounting income. The
deferred tax charge or credit is recognized using prevailing enacted or
substantively enacted tax rates. Deferred tax assets are recognized
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. If the company has unabsorbed depreciation or
carry forward tax losses, deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that such
deferred tax assets can be realized against future taxable profits.
Deferred tax assets / liabilities are reviewed as at each Balance Sheet
date based on developments during the year and available case laws, to
reassess realization / liabilities.
x) Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
Previously recognized impairment loss is further provided or reversed
depending on the changes in circumstances.
xi) Contingencies / Provisions:
Provision is recognized when the company has a present obligation as a
result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article