Mar 31, 2015
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
('Indian GAAP') and comply with the Accounting standards prescribed in
the Companies (Accounting Standards) Rules, 2006 which continue to
apply under Section 133 of the Companies Act, 2013, ('the Act') read
with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant
provisions of the Companies Act, 1956, to the extent applicable.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
Fixed Assets are stated at cost net of Cenvat and Value added tax less
accumulated depreciation including impairment loss. All cost relating
to installation up to the commencement of commercial production are
capitalised.
Depreciation on Fixed Assets has been provided on Straight Line Method
over the remaining useful life of the assets as specified in Schedule
II to the Companies Act, 2013.
Intangible assets are stated at cost of acquisition less accumulated
amortisation.
D) Investments:
The Investments being non-current in nature are carried at Cost or Fair
realisable value where the diminution in fair value is of permanent in
nature.
E) Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any.
i. Raw Materials, Stores and Spares are valued at cost.
ii. Finished stock and process stock are valued at cost or net
realisable value whichever is lower.
iii. The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost
attributable to the cost of inventory, net of excise duty /
counter-vailing duty / education cess and value added tax.
F) Provision for Current Tax and Deferred Tax:
i. Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on expected outcome of
earlier year assessments/appeals.
ii. Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted and substantively enacted as on the Balance Sheet date.
iii. Deferred tax assets are recognised and carried forward to the
extent that there is a reasonable certainty or virtual certainty as the
case may be that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i. Sales revenue are recognised when goods are invoiced and dispatched
to the customers are recorded net off Excise Duty, Sales Tax, Sales
returns and Trade discounts.
ii. Dividends are recognised when the right to receive them is
established.
I) Employee Benefits:
i. Short Term employee benefits are recognised as expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii. Post employment employee benefits are recognised as an expense in
the profit and loss account for the year in which the employee has
rendered services. The expense is recognised at the present value of
the amounts payable determined using actuarial valuation technique.
J) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the profit
and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
K) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
cost is charged to Statement of Profit and Loss.
L) Foreign Currency Transaction:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Transaction gain or losses
realised upon settlement of foreign currency transactions are included
in determining net profit for the period in which the transaction is
settled. All monetary items denominated in foreign currencies at the
year end are converted at the year end rates.
Mar 31, 2014
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention on an accrual basis of accounting in accordance with
generally accepted accounting principles in India, the provisions of
Companies Act, 1956 and Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and
practices generally prevalent in the industry.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
Fixed Assets are stated at cost net of Cenvat and Value added tax less
accumulated depreciation including impairment loss. All cost relating
to installation up to the commencement of commercial production are
capitalised.
Depreciation on Fixed Assets has been provided on Straight Line Method
at the rates and in the manner prescribed in Schedule XIV of the
Companies Act, 1956.
Intangible assets are stated at cost of acquisition less accumulated
amortisation.
D) Investments:
The Investments being non-current in nature are carried at Cost or Fair
realisable value where the diminution in fair value is of permanent in
nature.
E) Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any.
i. Raw Materials, Stores and Spares are valued at cost.
ii. Finished stock and process stock are valued at cost or net
realisable value whichever is lower.
iii. The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost
attributable to the cost of inventory, net of excise duty /
counter-vailing duty / education cess and value added tax.
F) Provision for Current Tax and Deferred Tax:
i. Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on expected outcome of
earlier year assessments/appeals.
ii. Deferred Ta x resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted and substantively enacted as on the Balance Sheet date.
iii. Deferred tax assets are recognised and carried forward to the
extent that there is a reasonable certainty or virtual certainty as the
case may be that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i. Sales revenue are recognised when goods are invoiced and dispatched
to the customers are recorded net off Excise Duty, Sales Tax, Sales
returns and Trade discounts.
ii. Dividends are recognised when the right to receive them is
established.
I) Employee Benefits:
i. Short Term employee benefits are recognised as expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii. Post employment employee benefits are recognised as an expense in
the profit and loss account for the year in which the employee has
rendered services. The expense is recognised at the present value of
the amounts payable determined using actuarial valuation technique.
J) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the profit
and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
K) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
cost is charged to Statement of Profit and Loss.
L) Foreign Currency Transaction:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Transaction gain or losses
realised upon settlement of foreign currency transactions are included
in determining net profit for the period in which the transaction is
settled. All monetary items denominated in foreign currencies at the
year end are converted at the year end rates.
iv Terms / Rights attached to Equity Shares :
The Company has only one class of shares referred to as Equity Shares
having a par value of Rs.10/-. Each holder of Equity Shares is entitled
to one vote per share.
The Company declares and pays dividends in Indian rupees.The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2014, the amount of per share proposed
final dividend recognised as distributions to equity shareholders was
Re. NIL per share ( P.Y. Re. 1/- )
In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company
after distribution of all preferential amounts.
The distribution will be in proportion to the number of Equity Shares
held by the shareholders.
vi The Company has issued Bonus Shares NIL (Previous Year 6,38,296) by
capitalisation of the reserves.
Nature of Security
Term Loan Amounting to Rs. 149.32 Lacs (P.Y. Rs. 236.82 Lacs) Secured
Against First Charge of Hypothecation of Assets acquired out of the
Term Loan and collaterally secured by first charge on the company''s
fixed assets at D-1/1, MIDC, Lote Parshuram, Tal. Khed, Dist.
Ratnagiri, Maharashtra
Terms
Repayable in 16 quarterly installments commencing from June, 2012. Rate
of Interest Base Rate 3.75% (P.Y. Base Rate 3.75%)
Mar 31, 2013
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention on an accrual basis of accounting in accordance with
generally accepted accounting principles in India, the provisions of
Companies Act, 1956 and Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and
practices generally prevalent in the industry.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
Fixed Assets are stated at cost net of Cenvat and Value Added Tax less
accumulated depreciation including impairment loss. All cost relating
to installation up to the commencement of commercial production are
capitalised.
Depreciation on Fixed Assets has been provided on Straight Line Method
at the rates and in the manner prescribed in Schedule XIV of the
Companies Act, 1956.
Intangible Assets are stated at cost of acquisition less accumulated
amortisation.
D) Investments:
The Investments being non-current in nature are carried at Cost or Fair
realisable value where the diminution in fair value is of permanent in
nature.
E) Inventories:
Items of inventories are measured at lower of Cost and Net realisable
value after providing for obsolescence, if any.
i. Raw Materials, Stores and Spares are valued at cost.
ii. Finished stock and process stock are valued at cost or net
realisable value whichever is lower.
iii. The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost
attributable to the cost of inventory, net of excise duty /
counter-vailing duty / education cess and value added tax.
F) Provision for Current Tax and Deferred Tax:
i. Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on expected outcome of
earlier year assessments/appeals.
ii. Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted and substantively enacted as on the Balance Sheet date.
iii. Deferred Tax assets are recognised and carried forward to the
extent that there is a reasonable certainty or virtual certainty as the
case may be that sufficient future taxable income will be available
against which such Deferred Tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i. Sales revenue are recognised when goods are invoiced and dispatched
to the customers are recorded net of Excise Duty, Sales Tax, Sales
Returns and Trade Discounts.
ii. Dividends are recognised when the right to receive them is
established.
I) Employee Benefits:
i. Short Term employee benefits are recognised as expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii. Post employment employee benefits are recognised as an expense in
the profit and loss account for the year in which the employee has
rendered services. The expense is recognised at the present value of
the amounts payable determined using actuarial valuation technique.
J) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the profit
and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
K) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
cost is charged to Statement of Profit and Loss.
L) Foreign Currency Transaction:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Transaction gain or losses
realised upon settlement of foreign currency transactions are included
in determining net profit for the period in which the transaction is
settled. All monetary items denominated in foreign currencies at the
year end are converted at the year end rates.
Mar 31, 2012
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention on an accrual basis of accounting in accordance with
generally accepted accounting principles in India, the provisions of
Companies Act, 1956 and Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and
practices generally prevalent in the industry.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
Fixed Assets are stated at cost net of Cenvat and Value added tax less
accumulated depreciation including impairment loss. All cost relating
to installation upto the commencement of commercial production are
capitalised.
Depreciation on Fixed Assets has been provided on Straight Line Method
at the rates and in the manner prescribed in Schedule XIV of the
Companies Act, 1956.
Intangible assets are stated at cost of acquisition less accumulated
amortization.
D) Investments:
The Investments being non-current in nature are carried at Cost or Fair
realisable value where the diminution in fair value is permanent in
nature.
E) Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any.
i. Raw Materials and Stores and Spares are valued at cost.
ii. Finished stock and process stock are valued at cost or net
realisable value whichever is lower.
iii. The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost
attributable to the cost of inventory, net of excise duty /
counter-vailing duty / education cess and value added tax.
F) Provision for Current tax and Deferred tax :
i. Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on expected outcome of
earlier year assessments/appeals.
ii. Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted and substantively enacted as on the Balance Sheet date.
iii. Deferred tax assets are recognised and carried forward to the
extent that there is a reasonable certainty or virtual certainty as the
case may be that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i. Sales revenue are recognised when goods invoiced and dispatched to
the customers are recorded net off Excise Duty, Sales Tax, Sales
returns and trade discounts.
ii. Dividends are recognised when the right to receive them is
established.
I) Employee Benefits:
i. Short Term employee benefits are recognised as expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii. Post employment employee benefits are recognised as an expense in
the profit and loss account for the year in which the employee has
rendered services. The expense is recognised at the present value of
the amounts payable determined using actuarial valuation technique.
J) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the profit
and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
K) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
cost is charged to Statement of Profit and Loss.
L) Foreign Currency Transaction:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Transaction gain or losses
realised upon settlement of foreign currency transactions are included
in determining net profit for the period in which the transaction is
settled. All monetary items denominated in foreign currencies at the
year end are converted at the year end rates.
Mar 31, 2011
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention on an accrual basis of accounting in accordance with
generally accepted accounting principles in India, the provisions of
Companies Act, 1956 and Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and
practices generally prevalent in the industry.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
i) Fixed Assets are stated at cost net of Cenvat and Value Added Tax
less accumulated depreciation including impairment loss. All cost
relating to installation upto the commencement of commercial production
are capitalised.
ii) Depreciation on Fixed Assets has been provided on Straight Line
Method at the rates and in the manner prescribed in Schedule XIV of the
Companies Act, 1956.The cost of leasehold land has been amortised over
the lease period of 95 years.
iii) Intangible assets are stated at cost of acquisition less
accumulated amortization.
D) Investments:
Current investments are carried at the lower of cost and quoted/fair
value.
E) Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any.
i) Raw Materials and Stores and Spares are valued at cost.
ii) Finished stock & process stock are valued at cost or net realisable
value whichever is lower.
iii) The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost
attributable to the cost of inventory, net of excise duty /
counter-vailing duty / education cess and value added tax.
F) Provision for Current tax and Deferred tax
i) Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on expected outcome of
earlier year assessments/appeals.
ii) Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted and substantively enacted as on the Balance Sheet date.
iii) Deferred tax assets are recognised and carried forward to the
extent that there is a reasonable certainty or virtual certainty as the
case may be that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i) Sales of goods are recognised on dispatches to the customers &
includes Excise Duty adjusted for discounts.
ii) Dividends are recognised when the right to receive them is
established.
I) Turnover
Turnover includes sale of goods, excise duty net of sales tax, adjusted
for discounts.
J) Employee Benefits:
i) Short Term employee benefits are recognised as expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post employment employee benefits are recognised as an expense in
the Profit and Loss account for the year in which the employee has
rendered services. The expense is recognised at the present value of
the amounts payable determined using actuarial valuation technique.
K) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the Profit
and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
L) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
cost is charged to Profit and Loss account.
Mar 31, 2010
A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention on an accrual basis of accounting in accordance with
generally accepted accounting principles in India, the provisions of
Companies Act, 1956 and Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and
practices generally prevalent in the industry.
B) Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and 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.
C) Fixed Assets and Depreciation:
i) Fixed Assets are stated at cost net of Cenvat and Value Added Tax
less accumulated depreciation including impairment loss. All cost
relating to installation upto the commencement of commercial production
are capitalised.
ii) Depreciation on Fixed Assets has been provided on Straight Line
Method at the- rates and in the manner prescribed in Schedule XIV of the
Companies Act, 1956. The cost of leasehold land has been amortised
over the lease period of 95 years.
iii) Intangible assets are stated at cost of acquisition less accumulated
amortisation.
D) Investments:
Current investments are carried at the lower of cost and quoted/fair
value.
E) Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any.
i) Raw Materials are valued at cost stores and spares are valued at
cost.
ii) Finished stock & process stock are valued at cost or net realisable
value whichever is lower.
iii) The valuation of inventories includes taxes, duties of non
refundable nature and direct expenses, and other direct cost attributable
to the cost of inventory, net of excise duty/counter veiling duty/education
cess and value added tax.
F) Provision for Current tax and Deferred tax
i) Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the provisions
of the Income Tax Act, 1961 and based on expected outcome of earlier year
assessments/appeals.
ii) Deferred Tax resulting from liming differences" between book and
taxable profit is accounted for using the tax rates and laws that have been
enacted and substantively enacted as on the Balance Sheet date.
iii) Deferred tax assets are recognised and carried forward to the extent
that there is a reasonable certainty or virtual certainty as the case
may be that sufficient future taxable income will be available against whicn
such deferred tax assets can be realised.
G) 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 probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
H) Revenue Recognition:
i) Sales of goods are recognised on dispatches to the customers and
includes Excise Duty adjusted for discounts.
ii) Dividends are recognised when the right to receive them is
established.
I) Turnover
Turnover includes sale of goods, excise duty net of sales tax, adjusted
for discounts.
J) Employee Benefits:
i) Short term employee benefits are recognized as expenses at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered.
ii) Post employment and other long term employee benefits are
recognized as an expense in the Profit and Loss account for the year in
which the employee has rendered services.The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation technique.
K) Impairment of Assets:
As asset is treated as impaired when the carrying cost of assets
exceeds recoverable value. An impairment loss is charged to the Profit
and Loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is.
reversed if there has been a change in the estimate of recoverable
amount.
L) Borrowing Cost:
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to gef ready for its intended use.AII other borrowing
cost are charged to Profit & Loss account.
M) Employee Separation Cost:
Compensation to employees who have opted for retirement under voluntary
retirement scheme of the Company is charged to Profit & Loss
account in the year of exercise of option.
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