Mar 31, 2016
Significant Accounting Policies and Notes to Abridged
Standalone Financial Accounts
1. These abridged standalone financial statements have been prepared in the prescribed Form AOC 3 in accordance with the requirement of first proviso of sub-section (1) of Section 136 of the Act and Rule 10 of Companies (Accounts) Rule, 2014. These abridged financial statements have been prepared on the basis of the complete set of standalone financial statements for the year ended 31st March, 2016 approved by the Board of Directors at their meeting held on May 26, 2016.
The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees, rounded off to the nearest rupees in lakhs. The note numbers appeared in the "[ ]"are as they appear in the complete set of Financial Statements.
2. Significant Accounting Policies (Note [24] of Standalone Financial Statement)
(i) System of Accounting
These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees, rounded off to the nearest rupees in lakhs.
(ii) Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent 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/materialised.
(iii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accumulated depreciation, amortization and impairment loss, if any. Cost is inclusive of duties, taxes, erection/ commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat / Cenvat benefit.
Land acquired on perpetual lease as well as on lease basis for a period of 90 years and above is treated as free hold land.
(iv) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capitalized, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(v) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for yearend settlement rates are recognized in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognized as income or expense over the period of the contract.
(vi) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1(x) below.
(vii) Employee Benefits Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive if any and compensated absences.
Long Term Employee Benefits
a) Defined Contribution Plans
( i ) Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of the employees'' basic salary. These contributions are made to the fund administered and managed by the Government of India. In addition, some employees of the Company are covered under the employees'' state insurance schemes, which are also defined contribution schemes recognized and administered by the Government of India.
The Company''s contributions to both these schemes are expensed in the Statement of Profit and Loss. The Company has no further obligations under these plans beyond its monthly contributions.
( ii ) Gratuity
The Company provides for gratuity obligations through a defined benefit retirement plan (the ''Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum payment to employees who are so entitled at retirement or termination of employment based on the respective employee salary and years of employment with the Company. The Company provides for the Gratuity Plan based on actuarial valuations in accordance with Accounting Standard 15 (revised), "Employee Benefits " The Company makes annual contributions to the LIC Insurance Corporation of India for the Gratuity Plan in respect of employees. The present value of obligation under gratuity is determined based on actuarial valuation using Project Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
b) Other long term benefit Leave Encashment
The Company has provided for the liability at period end on account of unavailed earned leave as per the actuarial valuation as per the Projected Unit Credit Method.
c) Actuarial gains and losses in respect of long term employment benefits are recognized as and when incurred.
(viii) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(ix) Sales
(a) Revenue from domestic sales is recognised upon dispatch to customers.
(b) Export sales are recognized upon dispatch from the customs port.
(x) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Draw Back and Special Incentive Schemes of the Government of India, in the year of Export Sales.
(xi) Depreciations, Amortization and Impairment
a. Depreciation on tangible fixed assets is provided on the basis of useful life the assets as prescribed in schedule II to the Companies Act, 2013.
b. Intangible Assets are amortized over the estimated useful life of such assets. Technical Know How is amortized by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
c. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired.
(xii) Inventories
Inventories are valued at lower of cost and net realizable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed.
(xiii) Leases
Assets acquired under finance leases are recognized as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
(xiv) Product warranty costs are recognized based on technical evaluation and past experience.
(xv) Taxation
Income tax expense/ savings comprise current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
(xvi) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is provable that there will be a out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the Financial Statements.
Mar 31, 2015
(i) System of Accounting
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are presented in
Indian rupees, rounded off to the nearest rupees in lakhs.
(ii) Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires judgements, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
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/materialised.
(iii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of
acquisition or construction less accumulated depreciation, amortization
and impairment loss, if any. Cost is inclusive of duties, taxes,
erection/ commissioning expenses, incidental expenses and borrowing
cost etc. and where applicable is net of Modvat / Cenvat benefit.
Land acquired on perpetual lease as well as on lease basis for a period
of 90 years and above is treated as free hold land.
(iv) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of
qualifying fixed assets are capitalized, net of income earned on
temporary investments of borrowings, by applying weighted average rate
for the eligible period. Other borrowing costs are charged to Profit
and Loss Account.
Borrowing costs comprise of interest and other cost incurred in
connection with borrowing of funds.
(v) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates
prevalent on the date(s) of transactions. Exchange differences arising
on adjustment for year end settlement rates are recognized in the
Profit and Loss Account. In case of forward contract, the difference
between the forward rate and exchange rate on the date of transaction
is recognized as income or expense over the period of the contract.
(vi) Research and Development
Research and Development expenditure of revenue nature are charged to
the Profit and Loss Account, while capital expenditure are added to the
cost of fixed assets in the year in which these are incurred and
depreciated in accordance with para 1(x) below.
(vii) Employee Benefits
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
as an expense during the period when the employees render the services.
These benefits include performance incentive if any and compensated
absences.
Long Term Employee Bene?ts
a) Defined Contribution Plans
(i) Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the
Provident Fund, which is a defined contribution plan. Both the employee
and the employer make monthly contributions to the plan at a
predetermined rate (presently 12%) of the employees'' basic salary.
These contributions are made to the fund administered and managed by
the Government of India. In addition, some employees of the Company are
covered under the employees'' state insurance schemes, which are also
defined contribution schemes recognized and administered by the
Government of India.
The Company''s contributions to both these schemes are expensed in the
Statement of Profit and Loss. The Company has no further obligations
under these plans beyond its monthly contributions.
(ii) Gratuity
The Company provides for gratuity obligations through a defined benefit
retirement plan (the ''Gratuity Plan'') covering all eligible employees.
The Gratuity Plan provides a lump sum payment to employees who are so
entitled at retirement or termination of employment based on the
respective employee salary and years of employment with the Company.
The Company provides for the Gratuity Plan based on actuarial
valuations in accordance with Accounting Standard 15 (revised),
"Employee Benefits " The Company makes annual contributions to the LIC
Insurance Corporation of India for the Gratuity Plan in respect of
employees. The present value of obligation under gratuity is determined
based on actuarial valuation using Project Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
b) Other long term benefit
Leave Encashment
The Company has provided for the liability at period end on account of
unavailed earned leave as per the actuarial valuation as per the
Projected Unit Credit Method.
c) Actuarial gains and losses in respect of long term employment
benefits are recognized as and when incurred.
(viii) Investments
Long Term Investments are stated at cost and provision for diminution
is made if the decline in value is other than temporary in nature.
Current Investments are stated at lower of cost and fair value.
(ix) Sales
(a) Revenue from domestic sales is recognised upon dispatch to
customers.
(b) Export sales are recognized upon dispatch from the customs port.
(x) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty
Draw Back and Special Incentive Schemes of the Government of India, in
the year of Export Sales.
(xi) Depreciations, Amortization and Impairment
(a) Depreciation on tangible fixed assets is provided on the basis of
useful life the assets as prescribed in schedule II to the Companies
Act, 2013.
(b) Intangible Assets are amortized over the estimated useful life of
such assets. Technical Know How is amortized by Straight Line Method at
the rate of 20% per annum over its estimated useful life of five years.
(c) An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
profit & loss account in the year in which an asset is identified as
impaired.
(xii) Inventories
Inventories are valued at lower of cost and net realizable value. Cost
of finished goods, work in process and factory made components include
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Finished goods
lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose
tools is determined on FIFO basis. Cost of materials is arrived at
after adjustment of, where applicable, Cenvat benefit availed or to be
availed.
(xiii) Leases
Assets acquired under finance leases are recognized as fixed assets at
the lower of the fair value at inception and the present value of
minimum lease payments. Lease payments are apportioned between the
finance charge and the reduction of the outstanding liabilities. The
finance charge is allocated to periods comprised in the lease term at a
constant periodic rate of interest on the remaining balance of the
liabilities.
(xiv) Product warranty costs are recognized based on technical
evaluation and past experience.
(xv) Taxation
Income tax expense/ savings comprise current tax and deferred tax
charge or credit. Provision for current tax is made on the estimated
taxable income at the tax rate applicable to the relevant assessment
year. The deferred tax assets are recognised based on the principles of
prudence. Deferred tax asset and deferred tax liabilities are
calculated by applying the rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
are reviewed at each Balance Sheet date.
(xvi) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is provable that there will be a out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
Financial Statements.
Mar 31, 2014
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of
acquisition or construction less accumulated depreciation, amortization
and impairment loss, if any. Cost is inclusive of duties, taxes,
erection/ commissioning expenses, incidental expenses and borrowing
cost etc. and where applicable is net of Modvat / Cenvat benefit.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of
qualifying fixed assets are capitalized, net of income earned on
temporary investments of borrowings, by applying weighted average rate
for the eligible period. Other borrowing costs are charged to Profit
and Loss Account.
Borrowing costs comprise of interest and other cost incurred in
connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates
prevalent on the date(s) of transactions. Exchange differences arising
on adjustment for year end settlement rates are recognized in the
Profit and Loss Account. In case of forward contract, the difference
between the forward rate and exchange rate on the date of transaction
is recognized as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to
the Profit and Loss Account, while capital expenditure are added to the
cost of fixed assets in the year in which these are incurred and
depreciated in accordance with para 1(x) below.
(vi) Employee Benefits
Gratuity & Leave Encashment
The Company has provided for the liability for future payment of
Gratuity and for leave encashment on the basis of actuarial valuation.
(vii) Investments
Long Term Investments are stated at cost and provision for diminution
is made if the decline in value is other than temporary in nature.
Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon dispatch to
customers.
(b) Export sales are recognized upon dispatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty
Draw Back and Special Incentive Schemes of the Government of India, in
the year of Export Sales.
(x) Depreciations, Amortization and Impairment
(a) No amount is being written off on Leasehold land. Depreciation on
vehicles is being provided as calculated under Written Down Value
Method at the rates specified in Schedule XIV to the Companies Act,
1956.
(b) On other tangible assets, depreciation is being provided
proportionately on Straight Line Method at the rates indicated below :
(I) On capital expenditure incurred on leasehold improvements
considering the period of lease; and
(II) On the remaining assets at the rates specified in Schedule XIV to
the Companies Act, 1956.
(a) Intangible Assets are amortized over the estimated useful life of
such assets. Technical Know How is amortized by Straight Line Method
at the rate of 20% per annum over its estimated useful life of five
years.
(b) An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
profit & loss account in the year in which an asset is identified as
impaired.
(xi) Inventories
Inventories are valued at lower of cost and net realizable value. Cost
of finished goods, work in process and factory made components include
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Finished goods
lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose
tools is determined on FIFO basis. Cost of materials is arrived at
after adjustment of, where applicable, Cenvat benefit availed or to be
availed.
(xii) Leases
Assets acquired under finance leases are recognized as fixed assets at
the lower of the fair value at inception and the present value of
minimum lease payments. Lease payments are apportioned between the
finance charge and the reduction of the outstanding liabilities. The
finance charge is allocated to periods comprised in the lease term at a
constant periodic rate of interest on the remaining balance of the
liabilities.
(xiii) Product warranty costs are recognized based on Technical
evaluation and past experience.
(xiv) Taxation
Income tax expense/ savings comprise current tax and deferred tax
charge or credit. Provision for current tax is made on the estimated
taxable income at the tax rate applicable to the relevant assessment
year. The deferred tax assets are recognised based on the principles of
prudence. Deferred tax asset and deferred tax liabilities are
calculated by applying the rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
are reviewed at each Balance Sheet date.
Mar 31, 2013
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of
acquisition or construction less accumulated depreciation, amortization
and impairment loss, if any. Cost is inclusive of duties, taxes,
erection/ commissioning expenses, incidental expenses and borrowing
cost etc. and where applicable is net of Modvat / Cenvat benefit.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of
qualifying fixed assets are capitalized, net of income earned on
temporary investments of borrowings, by applying weighted average rate
for the eligible period. Other borrowing costs are charged to Profit
and Loss Account.
Borrowing costs comprise of interest and other cost incurred in
connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates
prevalent on the date(s) of transactions. Exchange differences arising
on adjustment for year end settlement rates are recognized in the
Profit and Loss Account. In case of forward contract, the difference
between the forward rate and exchange rate on the date of transaction
is recognized as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to
the Profit and Loss Account, while capital expenditure are added to the
cost of fixed assets in the year in which these are incurred and
depreciated in accordance with para 1 (x) below.
(vi) Employee Benefits
Gratuity & Leave Encashment The Company has provided for the liability
for future payment of Gratuity and for leave encashment on the basis of
actuarial valuation.
(vii) Investments
Long Term Investments are stated at cost and provision for diminution
is made if the decline in value is other than temporary in nature.
Current Investments are stated at lower of cost and fair value.
(viii)Sales
(a) Revenue from domestic sales is recognised upon dispatch to
customers.
(b) Export sales are recognized upon dispatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty
Draw Back and Special Incentive Schemes of the Government of India'', in
the year of Export Sales.
(x) Depreciations, Amortization and Impairment
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under
Written Down Value Method at the rates specified in Schedule XIV to the
Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided
proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred oh leasehold improvements
considering the period of lease; and ii) On the remaining assets at the
rates specified in Schedule XIV to the Companies Act, 1956.
(d) Intangible Assets are amortized over the estimated useful life of
such assets. Technical Know How is amortized by Straight Line Method at
the rate of 20% per annum over its estimated useful life of five years.
(e) An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
profit & loss account in the year in which an asset is identified as
impaired.
(xi) Inventories
Inventories are valued at lower of cost and net realizable value. Cost
of finished goods, work in process and factory made components include
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Finished goods
lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose
tools is determined on FIFO basis. Cost of materials is arrived at
after adjustment of, where applicable, Cenvat benefit availed or to be
availed.
(xii) Leases
Assets acquired under finance leases are recognized as fixed assets at
the lower of the fair value at inception and the present value of
minimum lease payments. Lease payments are apportioned between the
finance charge and the reduction of the outstanding liabilities. The
finance charge is allocated to periods comprised in the lease term at a
constant periodic rate of interest on the remaining balance of the
liabilities.
(xiii) Product warranty costs are recognized based on Technical
evaluation and past experience.
(xiv) Taxation
Income tax expense/ savings comprise current tax and deferred tax
charge or credit. Provision for current tax is made on the estimated
taxable income at the tax rate applicable to the relevant assessment
year. The deferred tax assets are recognised based on the principles
of prudence. Deferred tax asset and deferred tax liabilities are
calculated by applying the rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
are reviewed at each Balance Sheet date.
Mar 31, 2012
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accumulated depreciation, amortization and impairment loss, if any. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat / Cenvat benefit From 01.10.2003 expenditure on acquisition of Intangible Assets (including Technical Know How / Engineering Fees treated as Miscellaneous Expenditure to the extent not written off or adjusted upto 30 09.2003) ane classified as Fixed Assets (in) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capitalized, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account, Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds, iiv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end settlement rates are recognized in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognized as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (x) below.
(vi) Employee Benefits
Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(vii) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii)Sales
(a) Revenue from domestic sales is recognised upon dispatch to customers.
(b) Export sales are recognized upon dispatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Depreciations, Amortization and Impairment
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
ii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
(dj Intangible Assets are amortized over the estimated useful life of such assets. Technical Know How is amortized by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years
(e) An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired.
(xi) Inventories
Inventories are valued at lower of cost and net realizable value. Cost of finished goods, work in process and factory' made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty. Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of. where applicable. Cenvat benefit availed or to be availed.
(xii) Leases
Assets acquired under finance leases are recognized as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
(xiii)Product warranty costs are recognized based on Technical evaluation and past experience..
(xiv)Taxation
Income tax expense/ savings comprise current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Mar 31, 2011
(a) The Company follows the mercantile sys- tem of accounting and
recognizes income and expenditure on accrual basis.
(b) Financial statements are based on histori- cal cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accu- mulated depreciation, amortization and impair- ment loss, if any. Cost is inclusive of duties, taxes, erection/commissioning expenses, inci- dental expenses and borrowing cost etc. and where applicable is net of Modvat / Cenvat ben- efit. From 01.10.2003 expenditure on acquisi- tion of Intangible Assets (including Technical Know How / Engineering Fees treated as Mis- cellaneous Expenditure to the extent not written off or adjusted upto 30.09.2003) are classified as Fixed Assets.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capi- talized, net of income earned on temporary in- vestments of borrowings, by applying weighted average rate for the eligible period. Other bor- rowing costs are charged to Profit and Loss Ac- count.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end settlement rates are rec- ognized in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognized as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of rev-enue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1(x) below.
(vi) Employee Benefits
a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valu- ation.
(b) Leave travel concession and medical re- imbursement to employees are accounted as and when incurred and claimed.
(vii) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii)Sales
(a) Revenue from domestic sales is recognised upon dispatch to customers.
(b) Export sales are recognized upon dispatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit En- titlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Depreciations, Amortization and Impairment
(a) No amount is being written off on Lease- hold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
ii) On the remaining assets at the rates specified in Schedule XIV to the Com- panies Act, 1956.
(d) Intangible Assets are amortized over the estimated useful life of such assets. Tech- nical Know How is amortized by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
(e) An asset is treated as impaired when the carrying cost of asset exceeds its recover- able value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired.
(xi) Inventories
Inventories are valued at lower of cost and net realizable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the fac- tory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat ben- efit availed or to be availed.
(xii) Leases
Assets acquired under finance leases are rec- ognized as fixed assets at the lower of the fair value at inception and the present value of mini- mum lease payments. Lease payments are ap- portioned between the finance charge and the reduction of the outstanding liabilities. The fi- nance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabili- ties.
(xiii)Product warranty costs are recognized based on Technical evaluation and past experience.
(xiv) Taxation
Income tax expense/ savings comprise current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence.
Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Sep 30, 2009
(i) System of Accounting
(a) The Company follows the mercantile sys- tem of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on histori- cal cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accu- mulated depreciation and amortisation. Cost is inclusive of duties, taxes, erection/commission- ing expenses, incidental expenses and borrow- ing cost etc. and where applicable is net of Modvat / Cenvat benefit. From 01.10.2003 ex- penditure on acquisition of Intangible Assets (in- cluding Technical Know How / Engineering Fees treated as Miscellaneous Expenditure to the extent not written off or adjusted upto 30.09.2003) are classified as Fixed Assets.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capitalised, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account. Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end settlement rates are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (x) below.
(vi) Employee Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valu- ation.
(b) Leave travel concession and medical re- imbursement to employees are accounted as and when incurred and claimed.
(vii) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon dispatch to customers.
(b) Export sales are recognised upon dispatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit En- titlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Depreciation and Amortisation
(a) No amount is being written off on Lease- hold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
ii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
(d) Intangible Assets are amortised over the estimated useful life of such assets. Tech- nical Know How is amortised by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
(xi) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the fac tory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed.
(xii) Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The fi- nance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabili- ties.
(xiii) Product warranty costs are recognised based on Technical evaluation and past experience..
(xiv) Taxation
Income tax expense/ savings comprise current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Sep 30, 2008
(i) System of Accounting
(a) The Company follows the mercantile sys- tem of accounting and recognises income and expenditure on accrual basis
(b) Financial statements are based on histori- cal cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accu- mulated depreciation and amortisation. Cost is inclusive of duties, taxes, erection/commission- ing expenses, incidental expenses and borrow- ing cost etc. and where applicable is net of Modvat / Cenvat benefit. From 01.10.2003 ex- penditure on acquisition of Intangible Assets (in- cluding Technical Know How / Engineering Fees treated as Miscellaneous Expenditure to the extent not written off or adjusted upto 30.09.2003) are classified as Fixed Assets.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capi- talised, net of income earned on temporary in- vestments of borrowings, by applying weighted average rate for the eligible period. Other bor- rowing costs are charged to Profit and Loss Ac- count.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end settlement rates are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or ex- pense over the period of the contract.
(v) Research and Development
Research and Development expenditure of rev- enue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (x) below.
(vi) Employee Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valu- ation.
(b) Leave travel concession and medical re- imbursement to employees are accounted as and when incurred and claimed.
(vii) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit En- titlement under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Depreciation and Amortisation
(a) No amount is being written off on Lease- hold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
ii) On the remaining assets at the rates specified in Schedule XIV to the Com- panies Act, 1956.
(d) Intangible Assets are amortised over the estimated useful life of such assets. Tech- nical Know How is amortised by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
(xi) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the fac- tory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat ben- efit availed or to be availed.
(xii) Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The fi- nance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabili- ties.
(xiii) Product warranty costs are recognised upon re- ceipt and acceptance of claim.
(xiv) Taxation
Income tax expense/ savings comprises current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Sep 30, 2006
1. Significant Accounting Policies
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets (tangible and intangible) are stated at cost of acquisition or construction less accumulated depreciation and amortisation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat/Cenvat benefit. From 01.10.2003 expenditure on acquisition of Intangible Assets (including Technical Know How/Engineering Fees treated as Miscellaneous Expenditure to the extent not written off or adjusted upto 30.09.2003) are classified as Fixed Assets.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition/construction of qualifying fixed assets are capitalised, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end/settlement rates are recognised as under:
(i) In respect of the transactions related to Fixed Assets, adjustments are made in the carrying amount of such assets.
(ii) In other cases, the same are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1(xi) below.
(vi) Employee Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(c) Leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed.
(vii) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Deferred Revenue Expenditure
Advertisement and Publicity Expenses relating to introduction of new products/models of vehicles etc. incurred upto 30.09.2003 are charged to Profit and Loss Account over a period of four years. Expenditure incurred after 01.10.2003 is charged to Profit & Loss Account in the year in which it is incurred.
(xi) Depreciation and Amortisation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
ii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
(d) Depreciation on additions to fixed assets till 31.03.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205 (2) (b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 01.04.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(e) Intangible Assets are amortised over the estimated useful life of such assets. Technical Know How is amortised by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
(xii) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed.
(xiii) Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
(xiv) Product warranty costs are recognised upon receipt and acceptance of claim.
(xv) Taxation
Income tax expense/savings comprises current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Mar 31, 2005
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost. .
(ii) Fixed Assets
Fixed Assets Itangible and intangible) are stated at cost of acquisition or construction less accumulated depreciation and amortisation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat / Cenvat benefit. From 01.10.2003 expenditure on acquisition of Intangible Assets (including Technical Know How / Engineering Pees treated as Miscellaneous Expenditure to the extent not written off or ad|usted upto 30.09.2003] are classified as Fixed Assets.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capitalised, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on. the date(s) of transactions. Exchange differences arising on adjustment for year end/ settlement rates are recognised as under:
(i) In respect of the transactions related to Fixed Assets, adjustments are made in the carrying amount of such assets.
(ii) In other cases, the same are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (xi) below.
(vi) Employee Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(c) Leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed.
(vii) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Deferred Revenue Expenditure
(a) Technical Know How / Engineering Fees for licence, patents, design, drawings and modifications of vehicles / components incurred upto 30.09.2003 are charged to Profit and Loss Account over a period of five years. With effect from 01.10.2003, these are treated as Intangible Assets and amortised over similar / remaining period.
(b) Advertisement and Publicity Expenses relating to introduction of new products / models of vehicles etc. incurred upto 30.09.2003 are charged to Profit and Loss Account over a period of four years. Expenditure incurred after 01.10.2003 is charged to Profit & Loss Account in the year in which it is incurred.
(c) Technical cum consultancy services for substantial revamping of operations incurred upto 30.09.2003 are charged to Profit and Loss Account over a period of four years. Expenditure incurred after 01.10.2003 is charged to Profit & Loss Account in the year in which it is incurred.
(xi) Depreciation and Amortisation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956. Ã . .
(c), On other tangible assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below : i) On capital expenditure incurred on leasehold improvements considering the period of lease; and ii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
(d) Depreciation on additions to fixed assets till 31.03.1991 on.account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV / Section 205 (2) (b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 01.04.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(e) Intangible Assets are amortised over the estimated useful life of such assets. Technical Know How is amortised by Straight Line Method at the rate of 20% per annum over its estimated useful life of five years.
(xii) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed.
(xiii) Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
(xiv) Product warranty costs are recognised upon receipt and acceptance of claim.
(xv) Taxation
Income tax expense/ savings comprises current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or. substantively enacted by the balance sheet date. Deferred tax assets are reviewed at each balance sheet date.
Sep 30, 2003
1. Significant Accounting Policies
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. However:
(i) Leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed.
(ii) Product warranty costs are recognised upon receipt and acceptance of claim.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat/Cenvat benefit. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition/construction of qualifying fixed assets are capitalised, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account. Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end/settlement rates are recognised as under:
(i) In respect of the transactions related to Fixed Assets, adjustments are made in the carrying amount of such assets.
(ii) In other cases, the same are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (xi) below.
(vi) Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(vii) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below :
(a) Technical Know-how/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/components are charged to Profit and Loss Account over a period of five years.
(b) Advertisement and Publicity Expenses relating to introduction of new products/models of vehicles etc. are charged to Profit and Loss Account over a period of four years.
(c) Technical cum consultancy services for substantial revamping of operations are charged to Profit and Loss Account over a period of four years.
(xi) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
(ii) On the remaining assets at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(d) Depreciation on additions to fixed assets till 31.03.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205(2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 01.04.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(xii) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed. Custom duty on materials lying in bond or in transit is accounted for at the time of clearance thereof.
(xiii) Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
(xiv) Taxation
Income tax expense/savings comprises Current Tax and Deferred Tax Charge or Credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The Deferred Tax Assets are recognised based on the principles of prudence. Deferred Tax Asset and Deferred Tax Liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets are reviewed at each Balance Sheet date.
Mar 31, 2002
1. System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. However:
(i) Leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed. (ii) Product warranty costs are recognised upon receipt and acceptance of claim.
(b) Financial statements are based on historical cost,
2. Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing cost etc. and where applicable is net of Modvat / Cenvat benefit. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
3. Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets are capitalised, net of income earned on temporary investments of borrowings, by applying weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account.
Borrowing costs comprise of interest and other cost incurred in connection with borrowing of funds.
4. Foreign Currency Transactions
Transactions in foreign currency are accounted at exchange rates prevalent on the date(s) of transactions. Exchange differences arising on adjustment for year end/ settlement rates are recognised as under:
(i) In respect of the transactions related to Fixed Assets, adjustments are made in the carrying amount of such assets.
(ii) In other cases, the same are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
5. Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (xi) below.
6. Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation FundTrust and theTrust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
7. Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
8. Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
9. Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
10. Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below:
(a) Technical Know How/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/ components are charged to Profit and Loss Account over a period of five years.
(b) Advertisement and Publicity Expenses relating to introduction of new products/ models of vehicles etc. are charged to Profit and Loss Account over a period of four years.
(c) Single Circuit Power Line Charges are charged to Profit and Loss Account over a period of four years.
(d) Share Issue Expenses are written off over a period of ten years.
(e) Technical cum consultancy services for substantial revamping of operations are charged to Profit and Loss Account over a period of four years.
11. Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated underwritten Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below:.
(i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(d) Depreciation on additions to fixed assets till 31.03.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV / Section 205 (2) (b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 01.04.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
12. Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts & loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Cenvat benefit availed or to be availed. Custom duty on materials lying in bond or in transit is accounted for at the time of clearance thereof.
13. Leases
Assets acquired under finance leases are recognised as fixed assets at the lower of the fair value at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated to periods comprised in the lease term at a constant periodic rate of interest on the remaining balance of the liabilities.
14. Taxation
Income tax expense/ savings comprises current tax and deferred tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year. The deferred tax assets are recognised based on the principles of prudence. Deferred tax asset and deferred tax liabilities are calculated by applying the rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date.
Mar 31, 2001
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. However:
(i) Leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed.
(ii) Product warranty costs are recognised upon acceptance of claim.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and borrowing costs etc. and where applicable, is net of Modvat/Cenvat benefit. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Borrowing costs
Borrowing costs, attributable to the acquisition / construction of qualifying fixed assets, are capitalised, net of income earned on temporary investments of borrowings, by applying a resultant weighted average rate for the eligible period. Other borrowing costs are charged to Profit and Loss Account.
Borrowing costs comprises of interest and other cost incurred in connection with borrowing of funds.
(iv) Foreign Currency Transactions
Transaction in foreign currency are accounted at exchange rates prevalent on the date of transactions. Exchange differences arising on adjustment for year end/ settlement rates are recognised as under:
(i) In respect of the transactions related to fixed assets, adjustments are made in the carrying amount of such assets.
(ii) In other cases, the same are recognised in the Profit and Loss Account. In case of forward contract, the difference between the forward rate and exchange rate on the date of transaction is recognised as income or expense over the period of the contract.
(v) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1(xi) below.
(vi) Treatment of Retirement Benefits
(a) Gratutity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for Leave Encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(vii) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(viii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the customs port.
(ix) Export Benefits
The Company accounts for Export Benefit Entitlements under the Duty Entitlement Pass Book Scheme of the Government of India, in the year of Export Sales.
(x) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below:
(a) Technical Know-How/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/ components are charged to Profit and Loss Account over a period of five years.
(b) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over a period of four years.
(c) Single Circuit Power Line Charges are charged to Profit and Loss Account over a period of four years.
(d) Share Issue Expenses are written off over a period of ten years.
(e) Technical cum consultancy services for substantial revamping of operations are charged to Profit and Loss Account over a period of four years.
(xi) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On capital expenditure incurred on leasehold improvements, considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.09.93 and w.e.f. 01.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(d) Depreciation on additions to fixed assets till 31.03.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/ Section 205 (2) (b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 01.04.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(xii) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools is determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, Modvat /
Cenvat benefit availed or to be availed. Custom duty on materials lying in bond or in transit is accounted for at the time of clearance thereof.
(xiii) Lease Rent
The aggregate of the following is charged to Profit and Loss Account :-
(i) Interest element of the lease rent paid/payable for the relevant period; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956. The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa-
Mar 31, 2000
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. However leave travel concession and medical reimbursement to employees are accounted as and when incurred and claimed.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use and where applicable is net of MODVAT benefit. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period subsequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Foreign Currency Transactions
(a) Recording of transactions in foreign currency is at the rate on the date of the transaction and where liability is covered by forward contract the same is translated at the forward rate. Differences on settlement/translation of such transactions are recognised in the Profit and Loss Account other than those relating to fixed assets, which are adjusted in the carrying cost of fixed assets. For the transaction covered by forward contract, the difference between the forward rate and the exchange rate on the date of transaction are recognised in the Profit and Loss Account over the period of the contract.
Assets and liabilities in foreign currency not covered by forward contracts are translated at the rates applicable at the year end and the resultant exchange differences are recognised in the Profit and Loss Account, other than those relating to fixed assets which are adjusted in the carrying cost of fixed assets.
(b) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205 (2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to fixed assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1(ix) below.
(v) Treatment of Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(vi) Investments
Long Term Investments are stated at cost and provision for dimunition is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(vii) Sales
(a) Revenue from domestic sales is recognised upon despatch to customers.
(b) Export sales are recognised upon despatch from the custom port.
(viii) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below :
(a) Technical Know How/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/components are charged to Profit and Loss Account over five years.
(b) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years.
(c) Single Circuit Power Line Charges are charged to Profit and Loss Account over four years.
(d) Share Issue Expenses are written off over a period of ten years.
(ix) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On capital expenditure incurred on leasehold improvements considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(x) Inventories
Inventories are valued at lower of cost and net realisable value. Cost of finished goods, work in process and factory made components include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of Excise Duty.
Cost for raw materials and components, stores and spare parts, loose tools are generally determined on FIFO basis. Cost of materials is arrived at after adjustment of, where applicable, MODVAT benefit availed or to be availed. Custom duty on materials lying in bond or in transit is accounted for at the time of clearance thereof.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account
(i) Interest element of the lease rent paid/payable for the relevant period; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Mar 31, 1999
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use and where applicable is net of MODVAT benefit. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period subsequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Foreign Currency Transactions
(a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Other outstanding foreign currency balances are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(c) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205 (2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to fixed assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred and depreciated in accordance with para 1 (ix) below.
(v) Treatment of Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has created a Superannuation Fund Trust and the Trust has taken Group Superannuation Scheme Policy with Life Insurance Corporation of India.
(vi) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(vii) Sales
Revenue from sales is recognised upon despatch to customers.
(viii) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below:
(a) Technical Know-how/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/components are charged to Profit and Loss Account over five years.
(b) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years.
(c) Single Circuit Power Line Charges are charged to Profit and Loss Account over four years.
(d) Share Issue Expenses are written off over a period of ten years.
(ix) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below:
(i) On capital expenditure incurred on leased premises considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(x) Inventories
(a) Raw Materials and Components, Stores and Spare Parts, Loose Tools and Work in Process are valued at cost after adjustment of, where applicable, MODVAT benefit availed or to be availed. Custom Duty on material lying in Bond or in transit is accounted for at the time of clearance thereof.
(b) Finished Goods are valued at lower of direct cost or net realisable value. Finished goods lying in the factory premises are valued exclusive of Excise Duty. The Finished Goods lying at Branches and Depots are valued inclusive of Excise Duty.
(c) For valuation of Work in Process and Factory Made Components, only direct material cost is considered.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account
(i) Interest element of the lease rent paid/payable for the relevant period; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Sep 30, 1997
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/ commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use and where applicable is net of MODVAT benefit. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period subsequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Foreign Currency Transactions
(a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deferred Payment Guarantees, for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Rollover of forward contracts are adjusted to "Miscellaneous Expenditure" (to the extent not written off or adjusted.
(c) Other outstanding foreign currency balances are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205(2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account. While capital expenditure are added to the cost of fixed assets in the year in which these are incurred.
(v) Treatment of Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has taken a Group Superannuation Scheme Policy with Life Insurance Corporation of India on behalf of Superannuation Fund Trust, specially created.
(vi) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(vii) Sales
Revenue from sales is recognised upon despatch to customers.
(viii) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below :
(a) Exchange Differences arising from changes in Exchange Rates and Rollover charges relating to Foreign Exchange Deferred Payment Guarantees are charged to Profit and Loss Account in the year in which the relevant instalment falls due.
(b) Technical know-how/Engineering Fees for licence, patents, design, drawings and modifications of vehicles/components are charged to Profit and Loss Account over five years.
(c) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years.
(d) Single Circuit Power Line Charges are charged to Profit and Loss Account over four years.
(e) Share Issue Expenses are written off over a period of ten years. Debenture Issue Expenses are written off over the period of redemption of Debentures.
(ix) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On capital expenditure incurred on leased premises at 17.65% considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(x) Inventories
(a) Raw Materials and Components, Stores and Spare Parts, Loose Tools and Process Stock are valued at cost after adjustment of, where applicable, MODVAT benefit availed or to be availed. Custom Duty on material lying in Bond or in transit is accounted for at the time of clearance thereof.
(b) Finished Goods are valued at lower of direct cost or net realisable value. Finished goods lying in the factory premises are valued exclusive of Excise Duty. The finished goods lying at Branches and Depots are valued inclusive of Excise Duty.
(c) For valuation of Process Stock and Factory Made Components, only direct material cost is considered.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account.
(i) Interest element of the lease rent paid-payable for the relevant period; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Sep 30, 1996
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use and is net of MODVAT benefit. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period sub-sequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Foreign Currency Transactions
(a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deferred Payment Guarantees, for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Rollover of forward contracts are adjusted to "Miscellaneous Expenditure (to the extent not written off or adjusted)".
(c) Outstanding foreign currency debtors are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3,1991 on account of foreign exchange fluctuations is being provided at the rates as per schedule XIV/ Section 205 (2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred.
(v) Treatment of Retirement Benefits
(a) Gratuity & Leave Encashment
The Company has provided for the liability for future payment of Gratuity and for leave encashment on the basis of actuarial valuation.
(b) Superannuation
The Company has taken a Group Superannuation Scheme Policy with Life Insurance Corporation of India on behalf of Superannuation Fund Trust, specially created.
(vi) Investments
Long Term Investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are stated at lower of cost and fair value.
(vii) Sales
Revenue from sales is recognised upon despatch to customers.
(viii) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below:
(a) Exchange Differences arising from changes in Exchange Rates and Rollover charges relating to Foreign Exchange Deferred Payment Guarantees are charged to Profit and Loss Account in the year in which the relevant instalment falls due.
(b) Terminal and other benefits paid on account of rationalisation of manpower to optimum level are charged to Profit and Loss Account over four years.
(c) Technical Know How for design, drawings and modifications of vehicles/ components are charged to Profit and Loss Account over five years.
(d) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years.
(e) Share Issue Expenses are written off over a period of ten years. Debenture Issue Expenses are written off over the period of redemption of Debentures.
(ix) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets. depreciation is being provided proportionately on Straight Line Method at the rates indicated below:
(i) On capital expenditure incured on leased premises at 17.65% considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to the Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(x) Inventories
(a) Before 30.09.1995. Raw Materials and Components, Stores and Spare Parts, Loose Tools and Process Stock were valued at cost including Excise Duty but without adjusting credit of MODVAT availed on such stock. From 30.9.1995 Stocks of such items which had become entitled for MODVAT benefit are valued after adjusting MODVAT credit availed/to be availed. Custom Duty on material lying in Bond or in transit is accounted for at the time of clearance thereof.
(b) Finished Goods are valued at lower of direct cost or net realisable value. Finished goods lying in the factory premises are valued exclusive of Excise Duty. The finished goods lying at Branches and Depots are valued inclusive of Excise Duty.
(c) For valuation of Process Stock and Factory Made Components, only direct material cost is considered.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account:-
(i) Interest element of the lease rent paid/payable for the relevant period; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Sep 30, 1995
(i) System of Accounting
(a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(ii) Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use and is net of MODVAT benefit. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period subsequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
(iii) Foreign Currency Transactions
(a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deferred Payment Guarantees, for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Rollover of Forward contracts are adjusted to "Miscellaneous Expenditure (to the extent not written off or adjusted)".
(c) Outstanding foreign currency debtors are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205(2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 1.4.1991 on Account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred.
(v) Treatment of Retirement Benefits
(a) Gratuity
The Company has provided for the liability for future payment of Gratuity on the basis of actuarial valuation.
(b) Superannuation
The Company has taken a Group Superannuation Scheme Policy with Life Insurance Corporation of India on behalf of Superannuation Fund Trust, Specially created.
(vi) Investments
Investments are stated at cost.
(vii) Sales
Revenue from sales is recognised upon despatch to customers.
(viii) Deferred Revenue Expenditure
In the following cases, Revenue Expenditure have been deferred as explained below:
(a) Exchange Differences arising from changes in Exchange Rates and Rollover charges relating to Foreign Exchange Deferred Payment Guarantees are charged to Profit and Loss Account in the year in which the relevant instalment falls due.
(b) Terminal and other benefits paid on account of rationalisation of manpower to optimum level are charged to Profit and Loss Account over four years.
(c) Technical Know How/Engineering Fees for design, drawings and modifications of vehicles/components are charged to Profit and Loss Account over five years.
(d) Advertisement and Publicity Expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years.
(e) Share Issue Expenses are written off over a period of ten years. Debenture Issue Expenses are written off over the period of redemption of Debentures.
(ix) Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below:
(i) On capital expenditure incurred on leased premises at 17.65% considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to The Companies Act, 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(x) Inventories
(a) Before 30.09.1995 Raw Materials and Components, Stores and Spare Parts, Loose Tools and Process Stock were valued at cost including Excise Duty but without adjusting credit of MODVAT availed on such stock. From 30.09.1995 Stocks of such items which had become entitled for MODVAT benefit are valued after adjusting MODVAT credit availed/to be availed. Custom Duty on material lying in Bond or in transit is accounted for at the time of clearance thereof.
(b) Finished goods are valued at lower of direct cost or net realisable value. Finished goods lying in the factory premises are valued exclusive of Excise Duty. The finished goods lying at Branches and Depots are valued inclusive of Excise Duty.
(c) For valuation of process stock and Factory Made Components, only direct material cost is considered.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account:
(a) Interest element of the lease rent paid/payable for the relevant period; and
(b) Periodic lease charge spread over the life of the assets determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Sep 30, 1994
(ii) Fixed Assets
Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of duties, taxes, erection/commissioning expenses, incidental expenses and interest etc. upto the date the asset is put to use. However, during the financial years 1982-83 to 1984-85 interest had been capitalised even for the period subsequent to such date. Custom Duty on machinery lying in Bond or in transit is accounted for at the time of clearance thereof.
iii) Foreign Currency Transactions
(a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. he gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deterred Payment Guarantees, for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Rollover of forward contracts are adjusted to Miscellaneous Expenditure (to the extent not written off or adjusted)".
(c) Outstanding foreign currency debtors are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205 (2) (b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to Fixed Assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
(iv) Research and Development
Research and Development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred.
Treatment of Retirement Benefits
(a) Gratuity
The Company has provided for the liability for future payment of Gratuity on the basis of actuarial valuation.
(b) Superannuation
The Company has taken a Group Superannuation Scheme Policy with Life Insurance Corporation of India on behalf of Superannuation Fund Trust, specially created.
Deferred Revenue Expenditure
In the following cases, revenue expenditure have been deferred over several years as explained below:
(a) Exchange differences arising from changes in Exchange Rates and Rollover charges relating to Foreign Exchange Deferred Payment Guarantees are charged to Profit and Loss Account in the year in which the relevant installment falls due.
(b) Terminal and other benefits paid on account of rationalisation of manpower to optimum level are charged to Profit and Loss Account over four years.
Depreciation
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below:
(i) On capital expenditure incurred on leased premises at 17.65% considering the period of lease; and
(ii) On the remaining assets, the Company has charged depreciation at the old rates specified in Schedule XIV to The Companies Act 1956 upto 30.9.93 and w.e.f. 1.10.93 on the basis of revised rates as prescribed by Notification dated 16.12.93 of the Department of Company Affairs.
(xi) Lease Rent
The aggregate of the following is charged to Profit and Loss Account:
(i) Interest element of the lease rent paid/payable for the relevant period ; and
(ii) Periodic lease charge spread over the life of the asset determined on the basis of depreciation rates specified in Schedule XIV to the Companies Act, 1956.
The excess of lease rent paid/payable over the aggregate amount charged as aforesaid is treated as prepaid lease rent and vice versa.
Sep 30, 1993
DEPRECIATION
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On the assets acquired/installed upto 31.10.1986 for which the specified period had been determined earlier, at the rates thus determined earlier in view of Circular No. 2/89 dated 7.3.1989 issued by Department of Company Affairs, Government of India. (ii) On Capital expenditure incurred on leased premises at 17.65% considering the period of lease; and
(iii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
FOREIGN CURRENCY TRANSACTIONS (a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deferred Payment Guarantees for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Rollover of forward contracts are adjusted to "Miscellaneous Expenditure (to the extent not written off or adjusted)."
(c) Outstanding foreign currency debtors are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205(2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to fixed assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
Sep 30, 1992
DEPRECIATION
(a) No amount is being written off on Leasehold land.
(b) Depreciation on vehicles is being provided as calculated under Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.
(c) On other assets, depreciation is being provided proportionately on Straight Line Method at the rates indicated below :
(i) On the assets acquired/installed upto 31.10.1986 for which the specified period had been determined earlier, at the rates thus determined earlier in view of Circular No. 2/89 dated 7.3.1989 issued by Department of Company Affairs, Government of India. (ii) On Capital expenditure incurred on leased premises at 17.65% considering the period of lease; and
(iii) On the remaining assets at the rates specified in Schedule XIV to the Companies Act, 1956.
FOREIGN CURRENCY TRANSACTIONS (a) Outstanding liability in respect of Foreign Exchange Loans for acquisition of Fixed Assets are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date. The gain or loss due to decrease/increase of such liability is adjusted to the cost of assets acquired through these loans.
(b) Outstanding liability in respect of Foreign Exchange Deferred Payment Guarantees for import of components are revalued at the contracted and/or at the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom and charges for Roll Over of forward contracts are adjusted to "Miscellaneous Expenditure (to the extent not written off or adjusted)."
(c) Outstanding foreign currency debtors are revalued on the basis of the exchange rates prevailing at the Balance Sheet date and the exchange differences arising therefrom are charged to the Profit and Loss Account.
(d) Depreciation on additions to fixed assets till 31.3.1991 on account of foreign exchange fluctuations is being provided at the rates as per Schedule XIV/Section 205(2)(b) of the Companies Act, 1956, from the year of such adjustments. Depreciation on the additions to fixed assets from 1.4.1991 on account of foreign exchange fluctuations is being provided over the residual life of the assets.
DEFERRED REVENUE EXPENDITURE In the following cases, revenue expenditure have been deferred over several years as explained below: (a) Exchange differences arising from changes in Exchange Rates and Rollover charges relating to Foreign Exchange Deferred Payment Gurantees are charged to Profit and Loss Account in the year in which the relevant instalment falls due. (b) Terminal and other benefits paid on account of rationalisation of manpower to optimum level are charged to Profit and Loss Account over four years. (c) Technical Know How Fees for design and drawings of vehicle components are charged to Profit and Loss Account over five years. (d) Advertisement and Publicity expenses relating to introduction of new models of vehicles etc. are charged to Profit and Loss Account over four years. (e) Share issue expense are written off over a period of ten years. Debenture issue expenses are written off over the period of redemption of debentures.
Mar 31, 1991
Depreciation has been calculated for the year in respect of (i) Fixed Assets except Vehicles on Straight Line Method and (ii) Vehicles on Written Down Value Method.
In view of Circular No.2/89 dated 7.3.1989 issued by the Department of Company Affairs, Government of India, depreciation on Straight Line Method, on the Fixed Assets except Vehicles acquired/installed upto 31.10.1986 for which the specified period had been determined earlier, has been provided at the rates thus determined earlier, instead of at the rates specified in Schedule XIV to the Companies Act, 1956.
Depreciation in respect of Capital Expenditure incurred on leased premises has been provided at 17.65% considering the period of lease.
Liability in respect of Foreign Exchange loans for Purchase of fixed assets remaining unpaid as on 31/3/91 has been converted into rupees at the rate of exchange prevailing on that date by adjusting to the cost of fixed assets financed through them.
In respect of components imported under Deferred payment Gurantee, 85% value had been initially translated at the " Standard Rate" of exchange, this being the exchange rate prevailing on the effective date of the contract. Based on expert opinions the unpaid foreign exchange liability of instalments payable after 31/3/91 has now been accounted for (i) in respect of liability covered under forward contract notes at the effective contract rates and (ii) in respect of the uncovered amount at the exchange rate prevailing on 31/3/91. The amount of difference in exchange thus arising has been adjusted to "Miscellaneous Expenditure(to the extent not written off or adjusted)". This increase in liability in respect of future instalments will be debited to the Profit and Loss account of the year in which each instalment falls due, by transfer from the said Miscellaneous expenditure irrespective of the year of payment.
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