Mar 31, 2015
1.1 Basis of accounting and preparation of financial statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts)
Rules,2014, and other provisions of the Act (to the extent applicable).
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. However, future
results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the periods in
which the results are known / materialised.
1.3 Inventories
In terms of the Accounting Standard "Valuation of the Inventories"
(Revised) (AS-2) issued by the Institute of Chartered Accountants of
India, inventories are valued on First in First out Basis (FIFO).
Inventories of Raw Materials, Consumable Stores, Packing Materials,
Work in Progress and Finished Goods are valued at lower of Cost and net
realisable Value. Cost Comprises all cost of purchase and other cost
incurred in bringing inventories to their present location and
condition. Work in Progress and Finished Goods include appropriate
amount proportions of the overhead and where applicable excise duty.
Imported raw materials, stock in transit are valued at cost and customs
duty thereon.
1.4 Depreciation and Amortisation
Upto the year ended 31st March, 2014, Schedule XIV of the Companies Act
1956 was followed for depreciation on Fixed Assets. From the Current
Year, Schedule XIV has been replaced by Schedule II to the Companies
Act 2013. Accordingly the depreciation has been charged under
straight-line method on the balance estimated useful life of the Asset
as specified in Schedule II of the Companies Act 2013. The Written Down
Value of Fixed Assets whose lives have expired as of 1st April 2014
have been adjusted in the General Reserve amountingto Rs.1,07,140.
1.5 Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales exclude excise duty, sales taxand value added tax.
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive is established.
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
Other income is accounted for on accrual basis except where the receipt
of income is uncertain in which case it is accounted for on receipt
basis.
1.6 Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition net of cenvat including
any cost, directly attributable to bringing the assets to their working
condition less accumulated depreciation except for certain fixed
assets, which have been revalued.
Capital Work in Progress are carried at cost, comprising direct cost,
related incidental expenses and attributable interest.
1.7 Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation. All costs till the commencement of
the commercial production are capitalised.
1.8 Foreign Currency
Transactions denominated in the foreign currencies are recorded at the
exchange rate prevailing on the date of transaction or that
approximates the actual rate at the date of the transaction.
The monetary assets and liabilities item denominated in the foreign
currencies at the year end are restated at the year end rates.
Any income or expense on account of exchange difference either on
settlement on translation is recognised in the statement of profit and
loss except in the case the long term liabilities, where they relate to
the acquisition of the fixed assets, in which case they are adjusted to
the carrying amount of such assets.
1.9 Employees Benefits
Defined Contribution Plans
Provident Fund &ESIC are defined contribution schemes established under
a State Plan. The contributions to the schemes are charged to the
statement of profit and loss in the year when the contributions become
due.
Defined Benefit Plans
The company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on post
employment at 15 days salary (last drawn salary) for each completed
year of services as per the rules of the company. The aforesaid
liability is provided for on the basis of an actuarial valuation made
using Project Unit Credit Method at the end of the financial year. The
scheme is funded with an insurance company in the form of a qualifying
insurance policy. Actuarial gains/losses are recognized in statement of
profit and loss in the year in which they arise. Compensated Absences
(Leave Encashment)
Employees are entitled to accumulate leave subject to certain limits
for future encashment. The liability in respect of leave encashment is
provided for on the basis of actuarial valuation made at the end of the
financial year using Project Unit Credit Method. The said liability is
not funded.
1.10 Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes substantial period
of time to get ready for its intended use. All other borrowing costs
are recognised as expense in the period in which they are incurred.
1.11 Earnings per share
The company reports basic and diluted earnings per equity share in
accordance with AS-20, on earnings per share. Basic earnings per equity
share have been computed by dividing net profit after tax by the
weighted average number of equity shares outstanding for the year.
Diluted earnings per equity share have been computed using the weighted
average number of equity shares and dilutive potential equity shares
outstanding during the year.
1.12 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets are reviewed at each Balance Sheet
date for their readability.
1.13 Research and Development
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.14 Impairment of Assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.15 Provisions and Contingent Liability
Provisions involving substantial degree of estimate in measurement are
recognised when there is a present obligation as a result of the past
events and it is probable that there will be an outflow resources.
Contingent liabilities and commitments are not recognised but are
disclosed in the notes. Contingents assets are neither recognised nor
disclosed in the financial statements.
Mar 31, 2013
A Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention except for certain fixed assets which are revaluated, in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
B Use of Estimates
The preparation of the financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of the revenues and expenses during the reporting period. The
differences between the actual results and the estimates are recognised
in the periods in which the results are known / materialised.
C Inventories
In terms of the Accounting Standard "Valuation of the Inventories"
(Revised) (AS-2) issue by the Institute of Chartered Accountants of
India, inventories are valued on First in First out Basis (FIFO).
Inventories of Raw Materials, Consumable Stores, Packing Materials,
Work in Progress and Finished Goods are valued at lower of Cost and net
realisable Value. Cost Comprises all cost of purchase and other cost
incurred in bringing inventories to their present location and
condition. Work in Progress and Finished Goods include appropriate
amount proportions of the overhead and where applicable excise duty.
Imported raw materials, stock in transit are valued at cost and custom
duty thereon.
D Depreciation and Amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st
April 1994 in accordance with the Accounting Standard on Depreciation
(Revised) (AS-6) issued by the Institute of Chartered Accountant of
India. Prior to 1st April, 1994, depreciation was charged on written
down value method as per the rates prescribed under the Income Tax Act,
1961.
E Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales include excise duty but exclude sales tax and value added tax.
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established. Insurance
claims are accounted for on the basis of claims admitted / expected to
be admitted and to the extent that there is no uncertainty in receiving
the claims.
F Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition net of cenvat including
any cost, directly attributable to bringing the assets to their working
condition less accumulated depreciation except for certain fixed
assets, which have| been revalued.
Capital Work in Progress are carried at cost, comprising direct cost,
related incidental expenses and attributable interest.
G Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation. All costs till the commencement of
the commercial production are capitalised.
H Foreign Currency Transactions
Transactions denominated in the foreign currencies are recorded at the
exchange rate prevailing on the date of transaction or that
approximates the actual rate at the date of the transaction.
The assets and liabilities item denominated in the foreign currencies
at the year end are restated at the year end rates.
Any income or expense on account of exchange difference either on
settlement on translation is recognised in the profit and loss account
except in the case the long term liabilities, where they relate to the
acquisition to the| fixed assets, in which case they are adjusted to
the carrying amount of such assets.
I Employees Benefits
Short term employees benefits are recognised as an expenses in the
statement of the profit and loss account of the year in which the
related service are rendered.
Post employment and other long term employees benefits are recognised
as an expenses in the statement of the profit and loss account for the
year in which the employees has rendered the services. The expenses are
recognised at the present value of the amounts payable determined using
actuarial valuations actuarial gain and losses in respect of the post
employment and other long term benefits are charged to the profit and
loss account.
J Borrowing Cost
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalised as part of the cost of such assets. A qualifying
asset is one that takes substantial period of time to get ready for its
intended use. All other borrowing cost are charged to the profit and
loss account
K Impairment of Assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
L Research and Development
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
M Provision of Current Tax and Deferred Tax
''Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
N Provisions and Contingents Liabilities and Contingent Assets
Provisions involving substantial degree of estimate in measurement are
recognised when there is a present obligation as a result of the past
events and it is probable that there will be an outflow resources.
contingents liabilities and commitments are not recognised but are
disclosed in the notes. Contingents assets are neither recognised nor
disclosed in the financial statements.
Mar 31, 2012
A Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention except for certain fixed assets which are revaluated, in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
B Use of Estimates
The preparation of the financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of the revenues and expenses during the reporting period. The
differences between the actual results and the estimates are recognised
in the periods in which the results are known / materialised.
C Inventories
In terms of the Accounting Standard "Valuation of the Inventories"
(Revised) (AS-2) issue by the Institute of Chartered Accountants of
India, inventories are valued on First in First out Basis (FIFO).
Inventories of Raw Materials, Consumable Stores, Packing Materials,
Work in Progress and Finished Goods are valued at lower of Cost and net
realisable Value. Cost Comprises all cost of purchase and other cost
incurred in bringing inventories to their present location and
condition. Work in Progress and Finished Goods include appropriate
amount proportions of the overhead and where applicable excise duty.
Imported raw materials, stock in transit are valued at cost and custom
duty thereon.
D Depreciation and Amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st
April 1994 in accordance with the Accounting Standard on Depreciation
(Revised) (AS-6) issued by the Institute of Chartered Accountant of
India. Prior to 1st April, 1994, depreciation was charged on written
down value method as per the rates prescribed under the Income Tax Act,
1961.
E Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales include excise duty but exclude sales tax and value added tax.
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
F Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition net of cenvat including
any cost, directly attributable to bringing the assets to their working
condition less accumulated depreciation except for certain fixed
assets, which have been revalued.
Capital Work in Progress are carried at cost, comprising direct cost,
related incidental expenses and attributable interest.
G Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation. All costs till the commencement of
the commercial production are capitalised.
H Foreign Currency Transactions
Transactions denominated in the foreign currencies are recorded at the
exchange rate prevailing on the date of transaction or that
approximates the actual rate at the date of the transaction.
The assets and liabilities item denominated in the foreign currencies
at the year end are restated at the year end rates.
Any income or expense on account of exchange difference either on
settlement on translation is recognised in the profit and loss account
except in the case the long term liabilities, where they relate to the
acquisition to the fixed assets, in which case they are adjusted to the
carrying amount of such assets.
I Employees Benefits
Short term employees benefits are recognised as an expenses in the
statement of the profit and loss account of the year in which the
related service are rendered.
Post employment and other long term employees benefits are recognised
as an expenses in the statement of the profit and loss account for the
year in which the employees has rendered the services. The expenses are
recognised at the present value of the amounts payable determined using
actuarial valuations actuarial gain and losses in respect of the post
employment and other long term benefits are charged to the profit and
loss account.
J Borrowing Cost
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalised as part of the cost of such assets. A qualifying
asset is one that takes substantial period of time to get ready for its
intended use. All other borrowing cost are charged to the profit and
loss account
K Impairment of Assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated
and impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
L Research and Development
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
M Provision of Current Tax and Deferred Tax
'Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
N Provisions and Contingents Liabilities and Contingent Assets
Provisions involving substantial degree of estimate in measurement are
recognised when there is a present obligation as a result of the past
events and it is probable that there will be an outflow resources,
contingents liabilities and commitments are not recognised but are
disclosed in the notes. Contingents assets are neither recognised nor
disclosed in the financial statements.
Mar 31, 2011
I) Basis of Preparation of Financial Statement
a) The financial statements have been prepared under the historical
cost concept in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
b) The company follows mercantile system of accounting and recognises
income and expenditure on acrual basis.
ii) Fixed Assets & Depreciation :
(A) Fixed Assets :
Fixed Assets are stated at cost of acquisition net of cenvat including
any cost, directly attributable to bringing the assets to their working
condition less accumulated depreciation, except for certain fixed
assets, which have been revalued.
(B) Depreciation :
Depreciation has been provided on Straight Line Method at the rates
prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1 st
April 1994 in accordance with the Accounting Standard on Depreciation
Accounting (Revised) (AS6) issued by the Institute of Chartered
Accountants of India. Prior to 1 st April 1994 depreciation was charged
on written down value method as per rates prescribed under the Income
Tax Act, 1961.
(C) Impairement :
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairement based on internal/external factors. An
impairement loss is recognised whenever the carrying amount of an
assets exceeds its recoverable amount. The recoverable amount is the
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value at the weighted average cost of capital.
Post impairement depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
iii) Valuation of Inventories:
In terms of Accounting Standard "Valuation of Inventories" (Revised)
(AS2) issued by the Institute of Chartered Accountants of India,
inventories are valued on First in First out Basis (FIFO). Inventories
of Raw Materials, Consumable Stores, Packing Material, Work in Progress
& Finished Goods are valued at lower of cost and net realizable value.
Cost comprises all cost of purchase and other cost incurred in bringing
inventories to their present location and condition. Work in progress
and finished goods include appropriate proportion of overheads and,
where applicable, excise duty. Imported raw material, stock in transit
are valued at cost and custom duty thereon.
iv) Research & Development:
Revenue Expenditure on Research and Development is charged off fully in
the Profit and Loss Account of the year in which it is incurred.
Capital Expenditure on Research and Development is added to Fixed
Assets and depreciation provided as stated.
v) Foreign Currency Transactions:
Transaction in Foreign currency are recorded at the rate of exchange in
force on the date of the transaction. Foreign currency
Receivable/Liabilities are stated at the rate of exchange prevailing as
on 31st March. All exchange differences arising on revenue transaction
are charged to Profit & Loss Account. Exchange differences in respect
of liability incurred to acquire fixed assets are adjusted in the
carrying cost of such assets.
vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting
for Retirement Benefits in the financial statements of the employers
issued by the Institute of Chartered Accountants of India;
Short term employee benefit obligations are estimated and provided for;
Post employment benefits and other long term employee benefits :
Define contribution plans :
Company's contribution to provident fund, employees state insurance and
other funds are determined under relevant schemes and are charged to
revenue.
Define benefit plans and compensated absences:
Company's liability towards gratuity and compensated absences are
actuarially determined at each balance sheet date using the projected
unit credit method. Actuarial gains and losses are recognised in
revenue.
Terminal benefits are recognised as an expense as and when incurred.
vii) Provision for Taxation :
Income Tax is provided for as per the provisions of the Income Tax Act,
1961.
Mar 31, 2010
I) Basis of Preparation of Financial Statement
a) The financial statements have been prepared under the historical
cost concept in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
b) The company follows mercantile system of accounting and recognises
income and expenditure on acrual basis.
ii) Fixed Assets & Depreciation:
(A) Fixed Assets:
Fixed Assets are stated at cost of acquisition net of cenvat including
any cost, directly attributable to bringing the assets to their working
condition less accumulated depreciation, except for certain fixed
assets, which have been revalued.
(B) Depreciation:
Depreciation has been provided on Straight Line Method at the rates
prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1st
April 1994 in accordance with the Accounting Standard on Depreciation
Accounting (Revised) (AS-6) issued by the Institute of Chartered
Accountants of India. Prior to 1st April 1994 depreciation was charged
on written down value method as per rates prescribed under the Income
Tax Act, 1961.
(C) Impairement:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairement based on internal/ external factors. An
impairement loss is recognised whenever the carrying amount of an
assets exceeds its recoverable amount. The recoverable amount is the
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value at the weighted average cost of capital.
Post impairement depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
iii) Valuation of Inventories:
In terms of Accounting Standard "Valuation of Inventories" (Revised)
(AS-2) issued by the Institute of Chartered Accountants of India,
inventories are valued on First in First out Basis (FIFO). Inventories
of Raw Materials, Consumable Stores, Packing Material, Work in Progress
& Finished Goods are valued at lower of cost and net realizable value.
Cost comprises all cost of purchase and other cost incurred in bringing
inventories to their present location and condition.
Work in progress and finished goods include appropriate proportion of
overheads and, where applicable, excise duty. Imported raw material,
stock in transit are valued at cost and custom duty thereon.
iv) Research & Development:
Revenue Expenditure on Research and Development is charged off fully in
the Profit and Loss Account of the year in which it is incurred.
Capital Expenditure on Research and Development is added to Fixed
Assets and depreciation provided as stated.
v) Foreign Currency Transactions:
Transaction in Foreign currency are recorded at the rate of exchange in
force on the date of the transaction. Foreign currency
Receivable/Liabilities are stated at the rate of exchange prevailing as
on 31 st March. Ail exchange differences arising on revenue transaction
are charged to Profit & Loss Account. Exchange differences in respect
of liability incurred to acquire fixed assets are adjusted in the
carrying cost of such assets.
vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting
for Retirement Benefits in the financial statements of the employers
issued by the Institute of Chartered Accountants of India;
Short term employee benefit obligations are estimated and provided for;
Post employment benefits and other long term employee benefits :-
Define contribution plans:
Companys contribution to provident fund, employees state insurance and
other funds are determined under relevant schemes ?, id are charged to
revenue.
Define benefit plans and compensated absences:
Companys liability towards gratuity and compensated absences are
actuarially determined at each balance sheet date using the projected
unit credit method. Actuarial gains and losses are recognised in
revenue.
Terminal benefits are recognised as an expense as and when incurred.
vii) Provision for Taxation:
Income Tax is provided for as per the provisions of the Income Tax
Act,1961.