Mar 31, 2015
1) GENERAL
a) The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") of India under the historical
cost convention on the accrual basis, except for certain tangible
assets which are carried at revalued amounts. GAAP comprises mandatory
accounting standards notified under the Companies (Accounting
Standards) Rules, 2006 and the provisions of the Companies Act, 2013.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard required a change in accounting policy
hitherto in use.
b) All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle to be 12
months for the purpose of current and non-current classification of
assets and liabilities.
2) FiXED ASSETS
i) Fixed assets are stated at cost (net of CENVAT / Value Added Tax)
less accumulated depreciation and impairment loss, if any. Expenditure
during construction period in respect of new project/ expansion is
allocated to the respective fixed assets on their being ready for
intended use Subsequent expenditure related to item of tangible asset
are added to its book value only if they increase the future benefits
from the existing asset beyond its previously assessed standards of
performance.
ii) In accordance with AS 28 on 'Impairment of Assets', where there is
an indication of impairment of the Company's assets related to cash
generating units, the carrying amounts of such assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of such assets is estimated as the higher of its
net selling price and its value in use. An impairment loss is
recognized in the Statement of Profit and Loss whenever the carrying
amount of such assets exceeds its recoverable amount.
3) INVESTMENTS
Investments are either classified as current or long-term based on the
management's intention at the time of purchase. Long-term investments
are carried at cost and provision is made to recognize any decline,
other than temporary, in the value of such investments. Current
investments are valued at the lower of the cost and fair value and
provision is made to recognize any decline in the carrying value.
4) INVENTORIES
Inventories are valued at lower of cost or estimated net realizable
value. Cost is determined on "First-in-First Out" basis.
The cost in case of finished goods and semi-finished goods includes
cost of purchase, cost of conversion and other costs (on the basis of
normal operating capacity) incurred in bringing the inventories to
their present location and condition.
5) REVENUE RECOGNITION
Revenue is recognized 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.
Sales are inclusive of excise duty and sales tax.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Interest income is recognized using time proportion method.
6) BORROWING COST
Borrowing Costs directly attributable to acquisition and construction
of qualifying assets are capitalized as a part of the cost of such
asset upto the date when such asset is ready for its intended use. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use. Other borrowing costs are
charged to Statement of Profit and Loss.
7) DEPRECIATION
Depreciation on Fixed Assets is provided to the extent of depreciable
amount on the Straight Line Method (SLM) Method. Depreciation is
provided based on useful life of the assets as prescribed in Schedule
II to the Companies Act, 2013.
Depreciation on additions / deletions of assets during the year is
provided on pro-rata basis from the month of such addition or upto the
month of such deletion as the case may be.
8) EMPLOYEE BENEFITS
i) Provident Fund:
Provident Fund is a defined contribution scheme and the contributions
are charged to the Statement of Profit and Loss as incurred.
ii) Gratuity:
Gratuity is a defined benefit retirement plan. The Company contributes
to the Scheme with Life Insurance Corporation of India based on
actuarial valuation carried on by them as at the close of the financial
year.
iii) Liability for compensated absences is provided for as per the
rules of the Company.
9) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at rates that
approximate the exchange rate prevailing on the date of respective
transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the Statement of Profit and Loss of
the year. Monetary assets and liabilities in foreign currency, which
are outstanding at the year end, are translated at the year end closing
exchange rate and the resultant exchange differences are recognized in
the Statement of Profit and Loss.
The premium or the discount arising at the inception of the forward
exchange contracts related to underlying receivables and payables are
amortized as income or expense over the period of the contracts.
10) LEASES
Lease under which the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Such assets
acquired are capitalized at fair value of the asset or present value of
the minimum lease payments at the inception of the lease, whichever is
lower. Lease payments under operating leases are recognised as an
expense in the Statement of Profit and Loss over the lease term.
11) TAXATION
Income tax expenses comprise current tax (i.e., amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax on assets are recognized and carried forward only if there
is a virtual / reasonable certainty of realization of such assets in
near future and are reviewed for their appropriateness of their
respective carrying value at each balance sheet date.
Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid
in terms of Section 115JAA of the Income Tax Act, 1961 based on
convincing evidence that the Company will pay normal tax within the
statutory time frame and the same is reviewed at each Balance Sheet
date.
12) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 any are
disclosed in the notes to accounts and are determined based on the
management perception that these liabilities are not likely to
materialize. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. Contingent assets are
neither recognized nor disclosed in the financial statements.
13) GOVERNMENT GRANTS AND SUBSIDIES
Government Grants and subsidies from the government are recognized when
there is reasonable certainty that the grant/subsidy will be received
and all attaching conditions will be complied with. Grant/Subsidy
receivable against an expense is deducted from such expenses and
grant/subsidy receivable against a specific fixed asset is deducted
from cost of the relevant fixed asset.
Mar 31, 2014
1) GENERAL
i) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India, the Accounting Standards as notified under
Companies (Accounting Standards) Rules, 2006, read with general
circular 15/2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013, the Provisions of the Companies
Act, 1956 and 2013 and on the accounting principle of going concern.
Expenses and Income to the extent considered payable and receivable,
respectively, are accounted for on accrual basis, except those with
significant uncertainties.
ii) The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of financial
statements. The recognition, measurement, classification or disclosure
of an item or information in the financial statements are made relying
on these estimates. Any revision to accounting estimates is recognized
prospectively.
2) FIXED ASSETS
i) Fixed assets are stated at cost (net of CENVAT / Value Added Tax)
less accumulated depreciation and impairment loss, if any. Expenditure
during construction period in respect of new project/ expansion is
allocated to the respective fixed assets on their being ready for
intended use.
ii) In accordance with AS 28 on ''Impairment of Assets'', where there is
an indication of impairment of the Company''s assets related to cash
generating units, the carrying amounts of such assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of such assets is estimated as the higher of its
net selling price and its value in use. An impairment loss is
recognized is recognized in the Statement of Profit and Loss whenever
the carrying amount of such assets exceeds its recoverable amount.
3) INVESTMENTS
Investments are either classified as current or long-term based on the
management''s intention at the time of purchase. Long-term investments
are carried at cost and provision is made to recognize any decline,
other than temporary, in the value of such investments. Current
investments are valued at the lower of the cost and fair value and
provision is made to recognize any decline in the carrying value.
4) INVENTORIES
Inventories are valued at lower of cost and estimated net realizable
value. Cost is determined on "First-in- First Out" basis.
The cost in case of finished goods and semi-finished goods includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
5) REVENUE RECOGNITION
Revenue is recognized 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.
Sales are inclusive of excise duty and sales tax.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Interest income is recognized using time proportion method.
6) BORROWING COST
Borrowing Costs directly attributable to acquisition and construction
of qualifying assets are capitalized as a part of the cost of such
asset upto the date when such asset is ready for its intended use.
Other borrowing costs are charged to Statement of Profit and Loss.
7) DEPRECIATION
Depreciation is provided on "Straight-line Method" at the rates and in
the manner prescribed in Schedule XIV to the Companies Act, 1956 and
2013 read with relevant circulars issued from time to time by the
Department of Company Affairs.
Individual assets costing less than Rs. 5,000 are depreciated in full
in the year of acquisition.
Depreciation on additions / deletions of assets during the year is
provided on pro-rata basis.
8) EMPLOYEE BENEFITS
i) Provident Fund:
Provident Fund is a defined contribution scheme and the contributions
are charged to the Statement of Profit and Loss as incurred.
ii) Gratuity:
Gratuity is a defined benefit retirement plan. The Company contributes
to the Scheme with Life Insurance Corporation of India based on
actuarial valuation carried on by them as at the close of the financial
year.
iii) Liability for leave encashment is provided for as per the rules of
the Company.
9) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at rates that
approximate the exchange rate prevailing on the date of respective
transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the Statement of Profit and Loss of
the year. Monetary assets and liabilities in foreign currency, which
are outstanding at the year end, are translated at the year end closing
exchange rate and the resultant exchange differences are recognized in
the Statement of Profit and Loss.
The premium or the discount arising at the inception of the forward
exchange contracts related to underlying receivables and payables are
amortized as income or expense over the period of the contracts.
As a matter of prudence, the Company does not recognize mark to market
foreign exchange gain on derivative contracts entered into to hedge the
foreign currency risk of future transactions and outstanding as at the
year end.
10) LEASES
Lease under which the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Such assets
acquired are capitalized at fair value of the asset or present value of
the minimum lease payments at the inception of the lease, whichever is
lower. Lease payments under operating leases are recognised as an
expense in the Statement of Profit and Loss over the lease term.
11) TAXATION
Income tax expenses comprise current tax (i.e., amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax on assets are recognized and carried forward only if there is a
virtual / reasonable certainty of realization of such assets in near
future and are reviewed for their appropriateness of their respective
carrying value at each balance sheet date.
Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid
in terms of Section 115JAA of the Income Tax Act, 1961 based on
convincing evidence that the Company will pay normal tax within the
statutory time frame and the same is reviewed at each Balance Sheet
date.
12) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 any are
disclosed in the notes to accounts and are determined based on the
management perception that these liabilities are not likely to
materialize. Contingent assets are not recognized or disclosed in the
financial statements.
Mar 31, 2013
1) GENERAL
i) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accounting principles of a going concern and the
Company follows mercantile system of accounting and recognizes income
and expenditure on accrual basis except those with significant
uncertainties.
ii) The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of financial
statements. The recognition, measurement, classification or disclosure
of an item or information in the financial statements are made relying
on these estimates. Any revision to accounting estimates is recognized
prospectively.
2) FIXED ASSETS
i) Fixed assets are stated at cost (net of CENVAT / Value Added Tax)
less accumulated depreciation and impairment loss, if any. Expenditure
during construction period in respect of new project/ expansion is
allocated to the respective fixed assets on their being ready for
intended use.
ii) In accordance with AS 28 on ''Impairment of Assets'' issued by The
Institute of Chartered Accountants of India, where there is an
indication of impairment of the Company''s assets related to cash
generating units, the carrying amounts of such assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of such assets is estimated as the higher of its
net selling price and its value in use. An impairment loss is
recognized is recognized in the Profit & Loss Accounts whenever the
carrying amount of such assets exceeds its recoverable amount.
3) INVESTMENTS
Investments are either classified as current or long-term based on the
management''s intention at the time of purchase. Long-term investments
are carried at cost and provision is made to recognize any decline,
other than temporary, in the value of such investments. Current
investments are valued at the lower of the cost and fair value and
provision is made to recognize any decline in the carrying value.
4) INVENTORIES
Inventories are valued at lower of cost and estimated net realizable
value. Cost is determined on "First-in-First Out" basis.
The cost in case of finished goods and semi-finished goods includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
5) REVENUE RECOGNITION
Revenue is recognized 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.
Sales are inclusive of excise duty and sales tax.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Interest income is recognized using time proportion method.
6) BORROWING COST
Borrowing Costs directly attributable to acquisition and construction
of qualifying assets are capitalized as a part of the cost of such
asset upto the date when such asset is ready for its intended use.
Other borrowing costs are charged to Statement of Profit & Loss
Account.
7) DEPRECIATION
Depreciation is provided on "Straight Line Method" at the rates and in
the manner prescribed in Schedule XIV to the Companies Act, 1956 read
with relevant circulars issued from time to time by the Department of
Company Affairs.
Individual assets costing less than Rs. 5,000 are depreciated in full
in the year of acquisition.
Depreciation on additions / deletions of assets during the year is
provided on pro-rata basis.
8) EMPLOYEE BENEFITS
i) Provident Fund :
Provident Fund is a defined contribution scheme and the contributions
are charged to the Profit and Loss Account as incurred.
ii) Gratuity:
Gratuity is a defined benefit retirement plan and being accounted for
on cash basis. iii) Liability for leave encashment is accounted for on
cash basis.
9) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the rate
of exchange in force at the date of transactions. Gain and loses
resulting from settlement of such transactions and from the transaction
of monetary assets and liabilities denominated in foreign currencies
are recognised in Profit and Loss Account.
Premium in respect of forward foreign exchange contract is recognised
over the life of the contracts. With respect to foreign exchange
contracts entered into for highly probable future transactions or firm
commitments, mark to market losses, if any, is recognized at the
Balance Sheet date in view of the principle of prudence enunciated in
AS Â 1.
10) TAXATION
Income tax expenses comprise current tax (i.e., amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax on assets are recognized and carried forward only if there is a
virtual / reasonable certainty of realization of such assets in near
future and are reviewed for their appropriateness of their respective
carrying value at each balance sheet date.
Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid
in terms of Section 115JAA of the Income Tax Act, 1961 based on
convincing evidence that the Company will pay normal tax within the
statutory time frame and the same is reviewed at each Balance Sheet
date.
11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 any are
disclosed in the notes to accounts and are determined based on the
management perception that these liabilities are not likely to
materialize. Contingent assets are not recognized or disclosed in the
financial statements.
Mar 31, 2012
1) GENERAL
1) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention on the accounting principles of a going
concern and the Company follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
ii) The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of financial
statements. The recognition, measurement, classification or disclosure
of an item or information in the financial statements are made relying
on these estimates. Any revision to accounting estimates is recognized
prospectively.
2) FIXED ASSETS
Fixed assets are stated at cost (net of CENVAT / Value Added Tax) less
accumulated depreciation and impairment loss, if any. Expenditure
during construction period in respect of new project/ expansion is
allocated to the respective fixed assets on their being ready for
intended use.
In accordance with AS 28 on 'Impairment of Assets' issued by The
Institute of Chartered Accountants of India, where there is an
indication of impairment of the Company's assets related to cash
generating units, the carrying amounts of such assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of such assets is estimated as the higher of its
net selling price and its value in use. An impairment loss is
recognized is recognized in the Profit & Loss Accounts whenever the
carrying amount of such assets exceeds its recoverable amount.
3) INVESTMENTS
Investments are either classified as current or long-term based on the
management's intention at the time of purchase. Long-term investments
are carried at cost and provision is made to recognize any decline,
other than temporary, in the value of such investments. Current
investments are valued at the lower of the cost and fair value and
provision is made to recognize any decline in the carrying value.
4) INVENTORIES
Inventories are valued at lower of cost and estimated net realizable
value except scrap which is valued at net realizable value. Cost is
determined on "First-in-First Out" basis.
The cost in case of finished goods and semi-finished goods includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
5) REVENUE RECOGNITION
Revenue is recognized 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.
Sales are inclusive of excise duty and sales tax.
Dividend income on investments is accounted for when the right to
receive the payment is established. Interest income is recognized using
time proportion method.
6) BORROWING COST
Borrowing Costs directly attributable to acquisition and construction
of qualifying assets are capitalized as a part of the cost of such
asset upto the date when such asset is ready for its intended use.
Other borrowing costs are charged to Statement of Profit & Loss.
7) DEPRECIATION
Depreciation is provided on "Straight Line Method" at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956
read with relevant circulars issued from time to time by the Department
of Company Affairs.
Individual assets costing less than Rs. 5,000 are depreciated in full
in the year of acquisition. Depreciation on additions / deletions of
assets during the year is provided on pro-rata basis.
8) EMPLOYEE BENEFITS
i) Provident Fund:
Provident Fund is a defined contribution scheme and the contributions
are charged to the Profit and Loss Account as incurred.
ii) Gratuity:
Gratuity is a defined benefit retirement plan and being accounted for
on cash basis.
iii) Liability for leave encashment is accounted for on cash basis.
9) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the rate
of exchange in force at the date of transactions. Gain and loses
resulting from settlement of such transactions and from the transaction
of monetary assets and liabilities denominated in foreign currencies
are recognised in Profit and Loss Account.
Premium in respect of forward foreign exchange contract is recognised
over the life of the contracts. With respect to foreign exchange
contracts entered into for highly probable future transactions or firm
commitments, mark to market losses, if any, is recognized at the
Balance Sheet date in view of the principle of prudence enunciated in
AS - 1.
10) TAXATION
Income tax expenses comprise current tax (i.e., amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax on assets are recognized and carried forward only if there is a
virtual / reasonable certainty of realization of such assets in near
future and are reviewed for their appropriateness of their respective
carrying value at each balance sheet date.
Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid
in terms of Section 115JAA of the Income Tax Act, 1961 based on
convincing evidence that the Company will pay normal tax within the
statutory time frame and the same is reviewed at each Balance Sheet
date.
11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 any are
disclosed in the notes to accounts and are determined based on the
management perception that these liabilities are not likely to
materialize. Contingent assets are not recognized or disclosed in the
financial statements.
Mar 31, 2010
1) GENERAL
a) The financial statements are prepared in accordance with Indian
Generally Accepted
Accounting Principles ("GAAP") under the historical cost convention on
the accounting principles of a going concern and the Company follows
mercantile system of accounting and recognizes income and expenditure
on accrual basis except those with significant uncertainties. GAAP
comprises mandatory accounting standards issued by the Institute of
Chartered Accountants of India ("ICAI"), the provisions of the.
Companies Act, 1956 and guidelines issued by the Securities and
Exchange Board of India. Accounting policies have been consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in accounting policy hitherto in use.b) The preparation of
financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contin-
gent liabilities on the date of financial statements. The recognition,
measurement, classi- fication or disclosure of an item or information
in the financial statements are made relying on these estimates. Any
revision to accounting estimates is recognized prospec- tively.
2) FIXED ASSETS
a) All fixed assets are stated at cost net of CENVAT / Value Added Tax
less accumulated depreciation and impairment loss, if any. Expenditure
during construction period in respect of new project/expansion is
allocated to the respective fixed assets on their being ready for
commercial use.
b) In accordance with AS 28 on Impairment of Assets issued by The
Institute of Chartered Accountants of India, where there is an
indication of impairment of the Companys assets
related to cash generating units, the carrying amounts of such assets
are reviewed at each balance sheet date to determine whether there is
any impairment. The recoverable amount of such assets is estimated as
the higher of its net selling price and its value in use. An impairment
loss is recognized is recognized in the Profit & Loss Accounts whenever
the carrying amount of such assets exceeds its recoverable amount.
3) INVESTMENTS
Investments are either classified as current or long-term based on the
managements intention at the time of purchase. Long-term investments
are carried at cost and provision is made to recognize any decline,
other than temporary, in the value of such investments. Current invest-
ments are carried at the lower of the cost and fair value and provision
is made to recognize any decline in the carrying value.
4) INVENTORIES
Inventories are valued at lower of cost and estimated net realizable
value except scrap which is valued at net realizable value. Cost is
determined on "First-in-First Out" basis.
The cost in case of finished goods and semi-finished goods includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
5) REVENUE RECOGNITION
Revenue is recognized 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 consid- eration.
Local sales are inclusive of excise duty and sales tax.
Dividend income on investments is accounted for when the right to
receive the payment is established.
6) BORROWING COST
Borrowing Costs directly attributable to acquisition and construction
of qualifying assets are capitalised as a part of the cost of such
asset upto the date when such asset is ready for its intended use.
Other borrowing costs are charged to Profit & Loss Account.
7) DEPRECIATION
Depreciation is provided on "Straight Line Method" at the rates and in
the manner prescribed in Schedule XIV to the Companies Act, 1956 read
with relevant circulars issued from time to time by the Department of
Company Affairs.
Individual assets costing less than Rs. 5,000 are depreciated in full
in the year of acquisition. Depreciation on additions / deletions of
assets during the year in provided on pro-rata basis.
8) EMPLOYEE BENEFITS
a) Provident Fund : Provident Fund is a defined contribution scheme and
contributions are charged to the Profit and Loss Account as incurred.
b) Gratuity : Gratuity is a defined benefit retirement plan and being
accounted for on cash basis.
c) Liability for leave encashment is accounted for on cash basis.
9) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force at the date of transactions. Gain and loses resulting from
settlement of such transactions and from the transaction of monetary
assets and liabilities denominated in foreign currencies are recognised
in Profit and Loss Account. Premium in respect of forward foreign
exchange contract is recognised over the life of the contracts.
10) TAXATION
Income tax expenses comprise current tax and fringe benefit tax (i.e.,
amount of tax for the year determined in accordance with the income tax
law) and deferred tax charges or credit (reflecting the tax effects of
timing differences between accounting income and taxable income of the
year).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax on assets are recognized and carried forward only if there is a
virtual / reasonable certainty of realization of such assets in near
future and are reviewed for their appropriateness of their respective
carrying value at each balance sheet date.
Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid
in terms of Section 115JAA of the Income Tax Act, 1961 based on
convincing evidence that the Company will pay normal tax within the
statutory time frame and the same is reviewed at each Balance Sheet
date.
11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 are disclosed in the notes
to accounts and are determined based on the management perception that
these liabilities are not likely to materialise. Contingent assets are not
recognised or disclosed in the financial statements.
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