Mar 31, 2015
1. BASIS OF ACCOUNTING
a. The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India ('Indian GAAP') to
comply with the Accounting Standards specified under Section 133 of
the Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013. The
financial statements have been prepared under historical cost
convention (except for certain fixed assets which have been revalued),
on the basis of a going concern and in accordance with the applicable
accounting standards.
b The Company follows the mercantile system of accounting and
recognises income and expenditure on the accrual basis except those
with significant uncertainties interalia, including non-accrual of
income on assets where principal / accrued income is fully provided as
doubtful.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosures of contingent liabilities on the date
of financial statements and reported amounts of revenue and expenses
for the year. Actual results may sometimes differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
3. FIXED ASSETS
Fixed Assets are stated at cost less depreciation except Land and
Buildings which have been revalued and are stated at revalued cost less
depreciation, where applicable. Cost comprises of all expenses
incurred upto commissioning/putting the assets to use. In line with
the basis followed for assets acquired on ownership, interest and other
direct expenses incurred during pre-operative period of the assets
obtained under Finance Lease arrangements are capitalised.
4. IMPAIRMENT OF ASSETS
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such asset is reduced to its recoverable
amount and the impairment loss is charged to statement of profit and
loss. If at the Balance Sheet date there is any indication that a
previously assessed impairment loss no longer exists, then such loss is
reversed and the asset is restated to that effect.
5. DEPRECIATION
Depreciation on tangible fixed assets is provided based on the useful
life prescribed under part 'C' of schedule II of the Companies Act,
2013
6. INVESTMENTS
Long Term Investments are stated at cost. Provision other than of
temporary nature is made for diminution in the value of investments.
7. VALUATION OF INVENTORIES
Inventories are valued at the lower of the cost and net realisable
value. Cost of Inventories is computed on moving weighted average
basis. Finished goods and work-in-process include cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
8. REVENUE RECOGNITION
a. Sale of goods is recognised when the property and all the signifi
cant risks and rewards of ownership are transferred to the buyer and no
significant uncertainty exists regarding the amount of consideration
that is derived from the sale of goods. Sales includes Excise duty and
are net off Discounts/Margins(as considered appropriate by the
management) sales tax and damaged and detained stocks
.Damaged and Dented stocks are accounted / provided for as when inspected
and destroyed.
b. Export sales are accounted for on the basis of the date of Bill of
Lading / Mates Receipt
c. Export Benefits Claims are accounted for in the year of Export.
9. TRANSACTION OF FOREIGN CURRENCY ITEMS
a. Foreign Currency transactions are recorded at the rate of exchange
prevailing on the date of the transaction.
b. Foreign Currency transactions remaining unsettled as on the last
day of the financial year are translated at the exchange rate
prevailing as on the date of Balance Sheet. The resultant difference,
if any, is dealt with in the Profit and Loss Account. Premium in
respect of forward exchange contracts is recognised over the life of
the contracts.
10. BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to Statement of Profit and Loss.
11. TAXATON
Current Tax is recognised as per Income Tax Act, 1961.
Timing differences in respect of Accounting Income and Taxable income
are recognised as Deferred Tax. Deferred Tax assets are recognised to
the extent there is reasonable / virtual certainty that sufficient
future, taxable income will be available against which such Deferred
Tax assets can be realised.
12. EMPLOYEE BENEFITS
a. Gratuity:
Liability under the payment of Gratuity Act, 1972 is a defined benefi
t obligation and is provided for on the basis of the actuarial
valuation made at the end of each financial year.
b) Provident Fund:
Retirement benefits in the form of Provident Fund / Pension Fund is a
defined contribution scheme and the contributions are charged to the
statement of profit and loss of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
c) Leave Entitlement:
Liability towards Leave Entitlement Benefit is provided for as at the
Balance Sheet date as per the actuarial valuation taken at the end of
the year.
Actuarial gains/ losses are immediately taken to statement of profit
and loss and are not deferred.
13. PROVISIONS, CONTINGENT ASSETS / LIABILITIES
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Disputed show cause notices
/show cause-cum-demand notices are not considered as contingent
liabilities. Contingent assets are not recognized or disclosed in the
financial statements
Mar 31, 2014
1. BASIS OF ACCOUNTING
a. The fi nancial statements are prepared on historical cost convention
(except for certain fi xed assets which have been revalued), on the
basis of a going concern and in accordance with the applicable
accounting standards.
b The Company follows the mercantile system of accounting and
recognises income and expenditure on the accrual basis except those
with signifi cant uncertainties interalia, including non-accrual of
income on assets where principal / accrued income is fully provided as
doubtful.
2. USE OF ESTIMATES
The preparation of fi nancial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosures of contingent liabilities on the date
of fi nancial statements and reported amounts of revenue and expenses
for the year. Actual results may sometimes differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
3. FIXED ASSETS
Fixed Assets are stated at cost less depreciation except Land and
Buildings which have been revalued and are stated at revalued cost less
depreciation, where applicable. Cost comprises of all expenses incurred
upto commissioning/putting the assets to use. In line with the basis
followed for assets acquired on ownership, interest and other direct
expenses incurred during pre-operative period of the assets obtained
under Finance Lease arrangements are capitalised.
4. IMPAIRMENT OF ASSETS
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such asset is reduced to its recoverable
amount and the impairment loss is charged to statement of profi t and
loss. If at the Balance Sheet date there is any indication that a
previously assessed impairment loss no longer exists, then such loss is
reversed and the asset is restated to that effect.
5. DEPRECIATION / AMORTISATION
a. Depreciation is calculated at the rates and in the manner specifi
ed under Schedule XIV to the Companies Act, 2013 on straight line
method except in respect of Laboratory Equipments pertaining to the
Rayon Plant (included in Note No-6), Railway Siding and Water Works,
Furniture and Vehicles, which has been calculated on written down value
method. Continuous process plant as defi ned in Schedule XIV has been
taken on technical assessment.
b. In the case of increase on account of revaluation of Buildings,
depreciation is computed on the basis of the, residual life as
estimated by the valuers.
c. Depreciation on spares purchased subsequently for specifi c
machinery and having irregular use is provided prospectively over the
residual life of the specifi c machinery.
6. INVESTMENTS
Long Term Investments are stated at cost. Provision other than of
temporary nature is made for diminution in the value of investments.
7. VALUATION OF INVENTORIES
Inventories are valued at the lower of the cost and net realisable
value. Cost of Inventories is computed on moving weighted average
basis. Finished goods and work-in-process include cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
8. REVENUE RECOGNITION
a. Sale of goods is recognised when the property and all the signifi
cant risks and rewards of ownership are transferred to the buyer and no
signifi cant uncertainty exists regarding the amount of consideration
that is derived from the sale of goods. Sales includes Excise duty and
are net off Discounts/Margins(as considered appropriate by the
management) sales tax and damaged and detained stocks .Damaged and
Dented stocks are accounted / provided for as when inspected and
destroyed.
b. Export sales are accounted for on the basis of the date of Bill of
Lading / Mates Receipt
c. Export Benefi ts Claims are accounted for in the year of Export.
9. TRANSACTION OF FOREIGN CURRENCY ITEMS
a. Foreign Currency transactions are recorded at the rate of exchange
prevailing on the date of the transaction.
b. Foreign Currency transactions remaining unsettled as on the last
day of the fi nancial year are translated at the exchange rate
prevailing as on the date of Balance Sheet. The resultant difference,
if any, is dealt with in the Profi t and Loss Account. Premium in
respect of forward exchange contracts is recognised over the life of
the contracts.
10. BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to Statement of Profi t and Loss.
11. TAXATON
Current Tax is recognised as per Income Tax Act, 1961.
Timing differences in respect of Accounting Income and Taxable income
are recognised as Deferred Tax. Deferred Tax assets are recognised to
the extent there is reasonable / virtual certainty that suffi cient
future, taxable income will be available against which such Deferred
Tax assets can be realised.
12. EMPLOYEE BENEFITS
a) Gratuity:
Liability under the payment of Gratuity Act, 1972 is a defi ned benefi
t obligation and is provided for on the basis of the actuarial
valuation made at the end of each fi nancial year.
b) Provident Fund:
Retirement benefi ts in the form of Provident Fund / Pension Fund is a
defi ned contribution scheme and the contributions are charged to the
statement of profi t and loss of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
c) Leave Entitlement:
Liability towards Leave Entitlement Benefi t is provided for as at the
Balance Sheet date as per the actuarial valuation taken at the end of
the year. Actuarial gains/ losses are immediately taken to statement of
profi t and loss and are not deferred.
13. PROVISIONS, CONTINGENT ASSETS / LIABILITIES
A provision is made based on a reliable estimate when it is probable
that an outfl ow of resources embodying economic benefi ts will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Disputed show cause notices
/show cause-cum-demand notices are not considered as contingent
liabilities. Contingent assets are not recognized or disclosed in the
fi nancial statements.
Mar 31, 2013
1 BASIS OF ACCOUNTING
a. The fnancial statements are prepared on historical cost convention
(except for certain fxed assets which have been revalued), on the basis
of a going concern and in accordance with the applicable accounting
standards.
b The Company follows the mercantile system of accounting and
recognises income and expenditure on the accrual basis except those
with signifcant uncertainties interalia, including non-accrual of
income on assets where principal / accrued income is fully provided as
doubtful.
2. USE OF ESTIMATES
The preparation of fnancial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosures of contingent liabilities on the date
of fnancial statements and reported amounts of revenue and expenses for
the year. Actual results may sometimes differ from these estimates. Any
revision to accounting estimates is recognised prospectively.
3 FIXED ASSETS
Fixed Assets are stated at cost less depreciation except Land and
Buildings which have been revalued and are stated at revalued cost less
depreciation, where applicable. Cost comprises of all expenses incurred
upto commissioning/putting the assets to use. In line with the basis
followed for assets acquired on ownership, interest and other direct
expenses incurred during pre-operative period of the assets obtained
under Finance Lease arrangements are capitalised.
4. IMPAIRMENT OF ASSETS
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such asset is reduced to its recoverable
amount and the impairment loss is charged to statement of proft and
loss. If at the Balance Sheet date there is any indication that a
previously assessed impairment loss no longer exists, then such loss is
reversed and the asset is restated to that effect.
5. DEPRECIATION / AMORTISATION
a. Depreciation is calculated at the rates and in the manner specifed
under Schedule XIV to the Companies Act, 1956 on straight line method
except in respect of Laboratory Equipments pertaining to the Rayon
Plant (included in Note No- 6), Railway Siding and Water Works,
Furniture and Vehicles, which has been calculated on written down value
method. Continuous process plant as defned in Schedule XIV has been
taken on technical assessment.
b In the case of increase on account of revaluation of Buildings,
depreciation is computed on the basis of the, residual life as
estimated by the valuers.
c Depreciation on spares purchased subsequently for specifc machinery
and having irregular use is provided prospectively over the residual
life of the specifc machinery.
6. INVESTMENTS
Long Term Investments are stated at cost. Provision other than of
temporary nature is made for diminution in the value of investments.
7. VALUATION OF INVENTORIES
Inventories are valued at the lower of the cost and net realisable
value. Cost of Inventories is computed on moving weighted average
basis. Finished goods and work-in-process include cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
8. REVENUE RECOGNITION
a Sale of goods is recognised when the property and all the signifcant
risks and rewards of ownership are transferred to the buyer and no
signifcant uncertainty exists regarding the amount of consideration
that is derived from the sale of goods. Sales includes Excise duty and
are net off Discounts/Margins(as considered appropriate by the
management) sales tax and damaged and detained stocks. Damaged and
Dented stocks are accounted / provided for as when inspected and
destroyed.
b Export sales are accounted for on the basis of the date of Bill of
Lading / Mates Receipt.
c Export Benefts Claims are accounted for in the year of Export.
9. TRANSACTION OF FOREIGN CURRENCY ITEMS
a Foreign Currency transactions are recorded at the rate of exchange
prevailing on the date of the transaction.
b Foreign Currency transactions remaining unsettled as on the last day
of the fnancial year are translated at the exchange rate prevailing as
on the date of Balance Sheet. The resultant difference, if any, is
dealt with in the Proft and Loss Account. Premium in respect of forward
exchange contracts is recognised over the life of the contracts.
10. BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to Statement of Proft and Loss.
11. TAXATON
Current Tax is recognised as per Income Tax Act, 1961.
Timing differences in respect of Accounting Income and Taxable income
are recognised as Deferred Tax. Deferred Tax assets are recognised to
the extent there is reasonable / virtual certainty that suffcient
future, taxable income will be available against which such Deferred
Tax assets can be realised.
12. EMPLOYEE BENEFITS
a) Gratuity:
Liability under the payment of Gratuity Act,1972 is a defned beneft
obligation and is provided for on the basis of the actuarial valuation
made at the end of each fnancial year.
b) Provident Fund:
Retirement benefts in the form of Provident Fund / Pension Fund is a
defned contribution scheme and the contributions are charged to the
statement of proft and loss of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
c) Leave Entitlement:
Liability towards Leave Entitlement Beneft is provided for as at the
Balance Sheet date as per the actuarial valuation taken at the end of
the year.
Actuarial gains/ losses are immediately taken to statement of proft and
loss and are not deferred.
13. PROVISIONS ,CONTINGENT ASSETS / LIABILITIES
A provision is made based on a reliable estimate when it is probable
that an outfow of resources embodying economic benefts will be required
to settle an obligation. Contingent liabilities, if material, are
disclosed by way of notes to accounts. Disputed show cause notices /
show cause-cum-demand notices are not considered as contingent
liabilities. Contingent assets are not recognized or disclosed in the
fnancial statements.
Mar 31, 2012
1 BASIS OF ACCOUNTING
a The financial statements are prepared on historical cost convention
(except for certain fixed assets which have been revalued), on the
basis of a going concern and in accordance with the applicable
accounting standards.
b The Company follows the mercantile system of accounting and
recognises income and expenditure on the accrual basis except those
with significant uncertainties interalia, including non accrual of
income on assets where principal / accrued income is fully provided as
doubtful.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosures of contingent liabilities on the date
of financial statements and reported amounts of revenue and expenses
for the year. Actual results may sometimes differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
3 FIXED ASSETS
Fixed Assets are stated at cost less depreciation except Land and
Buildings which have been revalued and are stated at revalued cost less
depreciation, where applicable. Cost comprises of all expenses incurred
upto commissioning/putting the assets to use. In line with the basis
followed for assets acquired on ownership, interest and other direct
expenses incurred during pre operative period of the assets obtained
under Finance Lease arrangements are capitalised.
4. IMPAIRMENT OF ASSETS
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such asset is reduced to its recoverable
amount and the impairment loss is charged to statement of profit and
loss. If at the Balance Sheet date there is any indication that a
previously assessed impairment loss no longer exists, then such loss is
reversed and the asset is restated to that effect.
5. DEPRECIATION/AMORTISATION
a. Depreciation is calculated at the rates and in the manner specified
under Schedule XIV to the Companies Act, 1956 on straight line method
except in respect of Laboratory Equipments pertaining to the Rayon
Plant (included in Note No 6), Railway Siding and Water Works,
Furniture and Vehicles, which has been calculated on written down value
method. Continuous process plant as defined in Schedule XIV has been
taken on technical assessment.
b In the case of increase on account of revaluation of Buildings,
depreciation is computed on the basis of the residual life as estimated
by the valuers.
c Depreciation on spares purchased subsequently for specific machinery
and having irregular use is provided prospectively over the residual
life of the specific machinery.
6. INVESTMENTS
Long Term Investments are stated at cost. Provision other than of
temporary nature is made for diminution in the value of investments.
7. VALUATION OF INVENTORIES
Inventories are valued at the lower ofthe cost and estimated net
realisable value. Cost of Inventories is computed on moving weighted
average basis. Finished goods and work in process include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
8. REVENUE RECOGNITION
a Sale of goods is recognised when the property and all the significant
risks and rewards of ownership are transferred to the buyer and no
significant uncertainty exists regarding the amount of consideration
that is derived from the sale of goods. Sales includes Excise duty and
are net off Discounts/Margins(as considered appropriate by the
management) sales tax and damaged and detained stocks .Damaged and
Dented stocks are accounted / provided for as when inspected and
destroyed.
b. Export sales are accounted for on the basis ofthe date of Bill of
Lading / Mates Receipt
c. Export Benefits Claims are accounted for in the year of Export.
9. TRANSACTION OF FOREIGN CURRENCY ITEMS
a Foreign Currency transactions are recorded at the rate of exchange
prevailing on the date ofthe transaction.
b. Foreign Currency transactions remaining unsettled as on the last
day ofthe financial year are translated at the exchange rate prevailing
as on the date of Balance Sheet. The resultant difference, if any, is
dealt with in the Profit and Loss Account. Premium in respect of
forward exchange contracts is recognised over the life ofthe contracts.
10. BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalized as a part ofthe cost of such assets
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to statement of profit and loss.
11. TAXATON
Current Tax is recognised as per Income Tax Act, 1961.
Timing differences in respect of Accounting Income and Taxable income
are recognised as Deferred Tax. Deferred Tax assets are recognised to
the extent there is reasonable / virtual certainty that sufficient
future taxable income will be available against which such Deferred Tax
assets can be realised.
12. EMPLOYEE BENEFITS
a) Gratuity:
Liability under the payment of Gratuity Act,1972 is a defined benefit
obligation and is provided for on the basis ofthe actuarial valuation
made at the end of each financial year.
b) Provident Fund:
Retirement benefits in the form of Provident Fund / Pension Fund is a
defined contribution scheme and the contributions are charged to the
statement of profit and loss of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
c) Leave Entitlement:
Liability towards Leave Entitlement Benefit is provided for as at the
Balance Sheet date as per the actuarial valuation taken at the end of
the year.
Actuarial gains/ losses are immediately taken to statement of profit
and loss and are not deferred.
13. PROVISIONS ,CONTINGENT / LIABILITIES
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Disputed show cause notices
/ show cause cum demand notices are not considered as contingent
liabilities. Contingent assets are not recognized or disclosed in the
financial statements.
(i) Contingent Liabilities not provided for in respect of (including
interest up to the date of Demand/claim):
(a) Claims against the Company not acknowledged as debts (excluding
claims where amounts not ascertainable / the cases where the
possibility of any outflow on settlement / decision is remote)
(a) The Company has taken various residential /commercial premises
under cancellable Operating Leases. The Lease Agreements are usually
renewable by mutual consent on mutually agreeable terms.
(b) The rental expense in respect of Operating Leases are charged as
rent under Note 23.
Sep 30, 2009
1 BASIS OF ACCOUNTING
a. The financial statements are prepared on historical cost convention
(except for certain fixed assets which have been revalued), on the
basis of a going concern and in accordance with the applicable
accounting standards.
b The Company follows the mercantile system of accounting and
recognises income and expenditure on the accrual basis except those
with significant uncertainties interalia, including non-accrual of
income on assets where principal / accrued income is fully provided as
doubtful.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted account- ing principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosures of contingent liabilities on the date
of financial statements and reported amounts of revenue and expenses
for the period. Actual results may sometimes differ from these
estimates. Any revision to accounting estimates is recognised
prospectively.
3. FIXED ASSETS
Fixed Assets are stated at cost less depreciation except Land and
Buildings which have been revalued and are stated at revalued cost less
depreciation, wherever applicable. Cost comprises of all expenses
incurred upto commissioning/putting the assets to use. In line with the
basis followed for assets acquired on ownership, interest and other
direct expenses incurred during pre-operative period of the assets
obtained under Finance Lease arrangements are capitalised.
4. IMPAIRMENT OF ASSETS
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such asset is reduced to its recoverable
amount and the impairment loss is charged to profit and loss account.
If at the Balance Sheet date there is any indication that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to that effect.
5. DEPRECIATION/AMORTISATION
a. Depreciation is calculated at the rates and in the manner specified
under Schedule XIV of the Companies Act, 1956 on straight line method
except in respect of Laboratory Equipments pertaining to the Rayon
Plant (included in item c of Schedule 5), Railway Siding and Water
Works, Furniture and Vehicles, which has been calculated on written
down value method. Continuous process plant as defined in Schedule XIV
has been taken on technical assessment.
b. In the case of increase on account of revaluation of Buildings,
depreciation is computed on the basis of the residual life as estimated
by the valuers.
c. Depreciation on spares purchased subsequently for specific machinery
and having irregular use is provided prospectively over the residual
life of the specific machinery.
6. INVESTMENTS
Long Term Investments are stated at cost. Provision other than of
temporary nature is made for diminution in the value of investments.
7. VALUATION OF INVENTORIES
Inventories are valued at the lower of the cost and estimated net
realisable value. Cost of Inventories is computed on moving weighted
average basis. Finished goods and work in process include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
8. REVENUE RECOGNITION
Sale of goods is recognised when the property and all the significant
risks and rewards of ownership are transferred to the buyer and no
significant uncertainty exists regarding the amount of consideration
that is derived from the sale of goods. Sales ! includes Excise duty
and are net off Discounts/Margins(as considered appropriate
i by the management) sales tax and damaged and detained stocks .Damaged
and Dented stocks are accounted / provided for as when inspected and
destroyed.
9. TRANSACTION OF FOREIGN CURRENCY ITEMS
a. Foreign Currency transactions are recorded at the rate of exchange
prevailing on the date of the transaction.
b. Foreign Currency transactions remaining unsettled as on the last
day of the i financial year are translated at the exchange rate
prevailing as on the date of
Balance Sheet. The resultant difference, if any, is dealt with in the
Profit and Loss Account. Premium in respect of forward exchange
contracts is recognised over the life of the contracts:
10. BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to profit and loss i account.
11. TAXATON
Current Tax is recognised as per Income Tax Act, 1961.
Timing differences in respect of Accounting Income and Taxable income
are recognised as Deferred Tax. Deferred Tax assets are recognised to
the extent there is reasonable / virtual certainty that sufficient
future taxable income will be available against which such Deferred Tax
assets can be realised.
The Provision of Fringe Benefit Tax has been made in respect of
employees benefits and other specified expenses as determined under
the Income Tax Act, 1961.
12. EMPLOYEE BENEFITS
a) Gratuity:
Liability under the payment of Gratuity Act, 1972 is a defined benefit
obligation and is provided for on the basis of the actuarial valuation
made at the end of each financial year.
b) Provident Fund:
Retirement benefits in the form of Provident Fund / Pension Fund is a
defined contribution scheme and the contributions are charged to the
Profit and Loss Account of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
c) Leave Entitlement:
Liability towards Leave Entitlement Benefit is provided for as at the
Balance Sheet date as per the actuarial valuation taken at the end of
the year.
Actuarial gains/ losses are immediately taken to Profit and Loss
account and are not deferred.
13. PROVISIONS, CONTINGENT / LIABILITIES
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Disputed show cause notices
/ show cause-cum-demand notices are not considered as contingent
liabilities. Contingent assets are not recognized or disclosed in the
financial statements.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article