Mar 31, 2015
A. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under the historical cost
convention on accrual method of accounting, in accordance with, the
generally accepted accounting principles in India, mandatory Accounting
Standard notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 2013.
B. Use of Estimates:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets, liabilities,
revenue and expenses during the reporting period. Although such
estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could
differ from these estimates & assumptions and such differences are
recognized in the period in which the results are crystallized.
C. Fixed Assets
All fixed assets are capitalised at cost inclusive of installation and
direct attributable expenses.
Fixed Assets are stated at cost. Cost includes interest on borrowed
capital used for construction of fixed assets and of expenditure
incurred during the construction period on a fair and reasonable basis.
D. Intangible Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization/depletion.
E. Depreciation/ Amortisation
Depreciation on fixed assets is provided over the useful life of the
assets based on technological evaluation or the useful life for the
tangible assets prescribed under Schedule II of Companies Act, 2013.
The cost of Intangible assets is amortized over a period of fifteen
years the estimated economic life of the assets.
F. Inventories
Inventories are valued at lower of cost and net realisable value as
estimated by the management. Cost of Inventories is calculated on
Standard Cost basis. Cost comprises of all cost of purchase, cost of
conversion and other cost incurred in bringing the inventories to their
present location and condition.
G. Foreign Currency Transactions and Translations:
Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction. Exchange rate differences
arising on the date of settlement of transaction are recognised as
Currency Exchange Fluctuation Account in Profit And Loss Account.
Year end balance of foreign currency loans and other
liabilities/receivables denominated in foreign currency are translated
at the applicable year end rates, and the resultant gains and losses
are recognised as Currency Exchange Fluctuation Account in Profit and
Loss Account.
H. Revenue Recognition
1) Consignment Sales
The consignment sales have been accounted for on sales effected by the
consignee.
2) Other Sales
Sales are accounted for net of CST and VAT. Sale of products are
recognized on transfer of property in goods as per agreed terms.
3) Other Incomes
All income items in all material aspects having bearing on the
financial statement are recognized on accrual basis.
I. Provisions and Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation and in respect of
which a reliable estimate can be made. Provisions are determined based
on management estimate required to settle the obligation at the balance
sheet date and are not discounted to present value. Contingent
liabilities are disclosed on the basis of judgment of the management/
independent experts. These are reviewed at each balance sheet date and
are adjusted to reflect the current management estimate.
J. Employees' Benefits Employees Benefits
1) Short Term Employee Benefits:-
Short Term Employee Benefits are recognized as an expense on an
undiscounted basis in the Profit & Loss account of the year in which
the related service is rendered.
2) Post Employment Benefits:-
(a) Defined Contribution Plan:
The Employer's contribution to the Provident Fund and Pension Scheme, a
defined contribution plan is made in accordance with the Provident Fund
Act, 1952 read with the Employees Pension Scheme, 1995.
(b) Defined Benefit Plan:
The liability for gratuity is provided through a policy taken from Life
Insurance Corporation of India (LIC) by an approved trust formed for
that purpose. The present value of the company's obligation is
determined on the basis of actuarial valuation at the year end and the
fair value of plan assets is reduced from the gross obligations under
the gratuity scheme to recognize the obligation on a net basis.
K. Taxation
(a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per the applicable provisions
of the Income Tax Act, 1961
(b) Deferred tax assets and liability are recognised for timing
differences between the accounting and taxable income, based on tax
rates that have been enacted or substantively enacted by the Balance
Sheet date. Where there are unabsorbed depreciation or carry forward
losses, Deferred tax assets are recognised only if there is virtual
certainly of realisation of such assets. Other deferred tax assets are
recognised only to the extent there is reasonable certainly of
realisation in future.
L. Borrowing Costs
Borrowing costs that are attributable to the acquisition of or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
M. Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher
of the net selling price or the value in use determined by the present
value of estimated future cash flows.
N. Earning Per Share
The earnings considered in ascertaining the Company's EPS comprises the
net profit after tax as per Accounting Standard-20 on "Earning per
share", issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted average
number of shares outstanding during the period. The diluted EPS is
calculated on the same basis as basic EPS, after adjusting for the
effects of potential dilutive equity shares unless the effect of the
potential dilutive share is anti-dilutive.
Mar 31, 2014
A. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under the historical cost
convention on accrual method of accounting, in accordance with, the
generally accepted accounting principles in India, mandatory Accounting
Standard notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956,
B. Use of Estimates:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets, liabilities,
revenue and expenses during the reporting period. Although such
estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could
differ from these estimates & assumptions and such differences are
recognized in the period in which the results are crystallized.
C. Fixed Assets
All fixed assets are capitalised at cost inclusive of installation and
direct attributable expenses.
Fixed Assets are stated at cost. Cost includes interest on borrowed
capital used for construction of fixed assets and of expenditure
incurred during the construction period on a fair and reasonable basis
D. Intangible Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization/depletion.
E. Depreciation
Depreciation on fixed assets has been charged on straight line method,
in the manner and at Ratesspecified in Schedule XIV to the Companies
Act, 1956. In respect of additions depreciation is provided on pro-rata
basis with reference to the number of days of addition. On assets sold,
discarded, etc. during the year, depreciation is provided upto the
date of sale/discard.
F. Inventories
Inventories are valued at lower of cost and net realisable value as
estimated by the management. Cost of Inventories is calculated on
Standard Cost basis. Cost comprises of all cost of purchase, cost of
conversion and other cost incurred in bringing the inventories to their
present location and condition.
G. Foreign Currency Transactions and Translations:
Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction. Exchange rate differences
arising on the date of settlement of transaction are recognised as
Currency Exchange Fluctuation Account in Profit And Loss Account.
Year end balance of foreign currency loans and other
liabilities/receivables denominated in foreign currency are translated
at the applicable year end rates, and the resultant gains and losses
are recognised as Currency Exchange Fluctuation Account in Profit and
Loss Account
H. Revenue Recognition
1) Consignment Sales
The consignment sales have been accounted for on sales effected by the
consignee.
2) Other Sales
Sales are accounted for net of CST and VAT. Sale of products are
recognized on transfer of property in goods as per agreed terms.
3) Other Incomes
All income items in all material aspects having bearing on the
financial statement are recognized on accrual basis.
I. Provisions and Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation and in respect of
which a reliable estimate can be made. Provisions are determined based
on management estimate required to settle the obligation at the balance
sheet date and are not discounted to present value. Contingent
liabilities are disclosed on the basis of judgment of the
management/independent experts. These are reviewed at each balance
sheet date and are adjusted to reflect the current management estimate.
J. Employees'' Benefits
Employees Benefits
1) Short Term Employee Benefits:-
Short Term Employee Benefits are recognized as an expense on an
undiscounted basis in the Profit & Loss account of the year in which
the related service is rendered.
2) Post Employment Benefits:-
(a) Defined Contribution Plan:
The Employer''s contribution to the Provident Fund and Pension Scheme, a
defined contribution plan is made in accordance with the Provident Fund
Act, 1952 read with the Employees Pension Scheme, 1995
(b) Defined Benefit Plan:
The liability for gratuity is provided through a policy taken from Life
Insurance Corporation of India (LIC) by an approved trust formed for
that purpose. The present value of the company''s obligation is
determined on the basis of actuarial valuation at the year end and the
fair value of plan assets is reduced from the gross obligations under
the gratuity scheme to recognize the obligation on a net basis
K. Taxation
(a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per the applicable provisions
of the Income Tax Act, 1961.
(b) Deferred tax assets and liability are recognised for timing
differences between the accounting and taxable income, based on tax
rates that have been enacted or substantively enacted by the Balance
Sheet date. Where there are unabsorbed depreciation or carry forward
losses, Deferred tax assets are recognised only if there isvirtual
certainly of realisation of such assets. Other deferred tax assets are
recognised only to the extent there is reasonable certainly of
realisation in future.
L. Borrowing Costs
Borrowing costs that are attributable to the acquisition of or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
M. Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price or the value in use determined by the present
value of estimated future cash flows.
N. Earning Per Share
The earnings considered in ascertaining the Company''s EPS comprises the
net profit after tax as per Accounting Standard-20 on "Earning per
share", issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted average
number of shares outstanding during the period. The diluted EPS is
calculated on the same basis as basic EPS, after adjusting for the
effects of potential dilutive equity shares unless the effect of the
potential dilutive share is anti-dilutive.
Mar 31, 2012
A. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under the historical cost
convention on accrual method of accounting, in accordance with, the
generally accepted accounting principles in India, mandatory Accounting
Standard notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956,
B. Use of Estimates:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets, liabilities,
revenue and expenses during the reporting period. Although such
estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could
differ from these estimates & assumptions and such differences are
recognized in the period in which the results are crystallized.
C. Fixed Assets
All fixed assets are capitalised at cost inclusive of installation and
direct attributable expenses.
Fixed Assets are stated at cost. Cost includes interest on borrowed
capital used for construction of fixed assets and of expenditure
incurred during the construction period on a fair and reasonable basis
D. Intangible Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization/depletion.
E. Depreciation
Depreciation on fixed assets has been charged on straight line method,
in the manner and at Ratesspecified in Schedule XIV to the Companies
Act, 1956. In respect of additions depreciation is provided on pro-rata
basis with reference to the number of days of addition. On assets sold,
discarded, etc. during the year, depreciation is provided upto the
date of sale/discard.
F. Inventories
Inventories are valued at lower of cost and net realisable value as
estimated by the management. Cost of Inventories is calculated on
Standard Cost basis. Cost comprises of all cost of purchase, cost of
conversion and other cost incurred in bringing the inventories to their
present location and condition.
G. Foreign Currency Transactions and Translations:
Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction. Exchange rate differences
arising on the date of settlement of transaction are recognised as
Currency Exchange Fluctuation Account in Profit And Loss Account.
Year end balance of foreign currency loans and other
liabilities/receivables denominated in foreign currency are translated
at the applicable year end rates, and the resultant gains and losses
are recognised as Currency Exchange Fluctuation Account in Profit and
Loss Account
H. Revenue Recognition
1) Consignment Sales
The consignment sales have been accounted for on sales effected by the
consignee.
2) Other Sales
Sales are accounted for net of Excise Duty, CST and VAT. Sale of
products are recognized on transfer of property in goods as per agreed
terms.
3) Other Incomes
All income items in all material aspects having bearing on the
financial statement are recognized on accrual basis.
I. Provisions and Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation and in respect of
which a reliable estimate can be made. Provisions are determined based
on management estimate required to settle the obligation at the balance
sheet date and are not discounted to present value. Contingent
liabilities are disclosed on the basis of judgment of the
management/independent experts. These are reviewed at each balance
sheet date and are adjusted to reflect the current management estimate.
J. Employees' Benefits
Employees Benefits
1) Short Term Employee Benefits:-
Short Term Employee Benefits are recognized as an expense on an
undiscounted basis in the Profit & Loss account of the year in which
the related service is rendered.
2) Post Employment Benefits:- (a) Defined Contribution Plan:
The Employer's contribution to the Provident Fund and Pension Scheme, a
defined contribution plan is made in accordance with the Provident Fund
Act, 1952 read with the Employees Pension Scheme, 1995
(b) Defined Benefit Plan:
The liability for gratuity is provided through a policy taken from Life
Insurance Corporation of India (LIC) by an approved trust formed for
that purpose. The present value of the company's obligation is
determined on the basis of actuarial valuation at the year end and the
fair value of plan assets is reduced form the gross obligations under
the gratuity scheme to recognize the obligation on a net basis
K. Taxation
(a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per the applicable provisions
of the Income Tax Act, 1961.
(b) Deferred tax assets and liability are recognised for timing
differences between the accounting and taxable income, based on tax
rates that have been enacted or substantively enacted by the Balance
Sheet date. Where there are unabsorbed depreciation or carry forward
losses, Deferred tax assets are recognised only if there isvirtual
certainly of realisation of such assets. Other deferred tax assets are
recognised only to the extent there is reasonable certainly of
realisation in future
L. Borrowing Costs
Borrowing costs that are attributable to the acquisition of or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
M. Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher
of the net selling price or the value in use determined by the present
value of estimated future cash flows.
N. Earning Per Share
The earnings considered in ascertaining the Company's EPS comprises the
net profit after tax as per Accounting Standard-20 on "Earning per
share", issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted average
number of shares outstanding during the period. The diluted EPS is
calculated on the same basis as basic EPS, after adjusting for the
effects of potential dilutive equity shares unless the effect of the
potential dilutive share is anti-dilutive.
g. Capital work in progress includes advances for expansion
projects/modification of existing Projects and purchase of assets.
h. Related Party Disclosures:
Disclosure as required by the Accounting Standardà 18 "Related Party
Disclosures" are given below:
1) List of Related Parties
Associate Companies:Seasons Textiles Ltd.
Key management personnel and relatives : Inderjeet S. Wadhwa and
Mandeep S. Wadhwa.
Relatives: TejKaur, Jasmer Singh Wadhwa, Manjit Kaur Wadhwa
j. Segmental Information:-
The Company has only one business segment of Textiles only. The company
operates its business from India. Therefore, there is only one business
and geographical segment.
l. The Company has not received any intimation from the suppliers
regarding status under Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure regarding, Principal amount due and the
interest due thereon outstanding to suppliers as at the end of the
accounting year, Interest paid during the year and Interest
payable/accrued/unpaid at the end of the accounting year, has not been
provided.
m. In the opinion of the management, the Current Assets, Loans and
Advances have a value on realisation in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet
n. In terms of 'Accounting Standard (AS) 28', the assets are not
impaired because the recoverable amount of fixed assets collectively
determined by the present value of estimated future cash flows is
higher than its carrying value.
o. Tour and Travelling Expenses include Rs 5,78,803./- on account of
Directors.
s. Cash Flow Statement:
The Cash Flow Statement has been compiled from and is based on the
Balance Sheet as on March 31, 2012 and Profit & Loss Account for the
year ended on that date.
The Cash Flow Statement has been prepared on the basis of indirect
method as set out in the Accounting Standard à 3 on Cash Flow Statement
issued by the Institute of Chartered Accountant of India.
Mar 31, 2011
A. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under the historical cost
convention on accrual method of accounting, in accordance with, the
generally accepted accounting principles in India, mandatory Accounting
Standard notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956,
B. Use of Estimates:
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialzed.
C. Fixed Assets:
1) Fixed Assets including intangible assets are stated at cost of
acquisition (net of Cenvat & VAT, wherever applicable), inclusive of
freight, duties and other directly attributable costs, less
depreciation.
2) i) Depreciation on all fixed assets is provided on straight line
method at the rate specified in schedule XIV of the Companies Act, 1956
or at rates arrived at on the basis of the balance useful lives of the
assets based on technical evaluation/revaluation of the related assets,
whichever is higher, on pro-rata basis.
ii) On assets sold, discarded, etc. during the year, depreciation is
provided upto the date of sale/discard.
D. Investments
Long Term investments are valued at cost. The cost of investment
includes acquisition charges such as brokerage, fees and duties.
Provision for diminution in the value of long term investment is made
only if such a decline is other than temporary in the opinion of
management. Current investment are valued at lower of cost or net
realizable value.
E. Inventories
Inventories are valued as under:
1) Raw Material, WIP, Stores, Spares & Packing Material:
- At cost or net realizable value whichever is lower. Cost is arrived
at on first-in-first-out (FIFO) basis.
2) Finished Products:
- At cost of production or market value whichever is lower. Cost of
production is arrived at on standard cost basis.
F. Foreign Currency Transactions
1) Transactions in Foreign currencies are recorded on initial
recognition at the exchange rate prevailing on the date of the
transaction.
2) All foreign currency liabilities and monetary assets are stated at
the exchange rate prevailing at the date of the Balance Sheet except
where forward exchange cover is obtained and the loss or gain is taken
to the Profit & Loss account as exchange fluctuation.
3) In respect of the forward contracts, the difference between the
forward rate and the exchange rate at the date of transaction is
recognized as income or expense and is spread over the life of the
contract.
G. Revenue Recognition
1) Consignment Sales
The consignment sales have been accounted for on sales effected by the
consignee.
2) Other Sales
Sales are accounted for net of Excise Duty, CST and VAT. Sale of
products are recognized on transfer of property in goods as per agreed
terms.
3) Other Incomes
All income items in all material aspects having bearing on the
financial statement are recognized on accrual basis.
H. Provisions and Contingent Liabilities
1) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if.
a) the Company has present obligation as a result of a past event;
b) a probable outflow of resources embodying economic benefits is
expected to settle the obligation; and
c) the amount of obligation can be reliable estimated.
2) Contingent liability is disclosed in the case of:
a) a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, or,
b) a possible obligation, unless the probability of outflow of
resources embodying economic benefits is remote.
I. Employees' Benefits
1) Short term employee benefits are recognized as expense in the Profit
& Loss Account of the year in which service is rendered.
2) Company's contributions to Provident Fund and other Funds during the
year are charged to Profit and Loss Account.
3) Provision for retirement gratuity & leave encashment are determined
and made in accordance with the relevant laws by assuming that benefits
are payable to all employees at the year end and are charged to Profit
& Loss Account.
J. Taxation
Provision for tax is made for both current and deferred taxes.
Provision for current income-tax is made on the current tax rates based
on assessable income. The Company provides for deferred tax based on
the tax effect of timing differences resulting from the recognition of
items in the financial statements and in estimating its current tax
provision. The deferred tax assets is recognized and carried forward
only to the extent that there is a reasonable certainty that the assets
will be realized in future.
K. Borrowing Costs
Borrowing costs that are attributable to the acquisition of or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
L. Lease
1) Operating: Lease of assets under which significant risks and rewards
of ownership are effectively retained by the lessor are classified as
operating leases. Lease payments under an operating lease are
recognized as expense in the Profit & Loss Account, on straight line
basis over the lease term.
2) Finance: Lease assets acquired on which significant risks and
rewards of ownership effectively transferred to the Company are
capitalized at lower of fair value or the amounts paid under such lease
arrangements. Such assets are amortized over the period of lease.
M. Impairment of Assets
At each Balance Sheet date an assessment is made whether any indication
exists that an asset has been impaired, if any such indication exists,
an impairment loss, i.e. the amount by which the carrying amount of an
asset exceed its recoverable amount is provided in the books of
account.
N. Earning Per Share
The earnings considered in ascertaining the Company's EPS comprises the
net profit after tax as per Accounting Standard-20 on "Earning per
share", issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted average
number of shares outstanding during the period. The diluted EPS is
calculated on the same basis as basic EPS, after adjusting for the
effects of potential dilutive equity shares unless the effect of the
potential dilutive share is anti-dilutive.
0. Provision For Doubtful Debts
The company does not make provision for doubtful debts, and follow the
practice of writing off bad debts, as and when determined.
Mar 31, 2010
A. ACCOUNTING CONVENTION
The financial statements are prepared under the historical cost
convention on accrual basis and comply with Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
b. FIXED ASSETS
Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation.
c. VALUATION OF INVENTORIES
Finished goods: Finished goods are valued at the lower of cost or net
realizable value. Cost is determined using First in First out (FIFO)
method.
Raw Material: Raw material, if any is valued at cost.
d. DEPRECIATION
Depreciation on Fixed Assets except on Temporary Modification/Interiors
on leased premises has been provided on straight line basis at the
rates prescribed
Under Schedule XIV of the Companies Act,1956.
Depreciation on Temporary Modifications/Interiors on long term leased
premises has been provided over initial lease period and/or its life of
the concerned showroom/Asset. However the expense is revenue in nature.
e. VALUATION OF INVESTMENT
Investments are valued at cost inclusive of expenses incidental to
their acquisition, if any. Investments meant for long term are carried
at cost and any diminution in value, though material is not recognized
if such diminution in value in the opinion of the management is
temporary in nature.
f. FOREIGN CURRENCY TRANSACTIONS
1. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of the transaction.
2. Monetary items denominated in foreign currency at the year end and
not covered by forward exchange contracts are translated at year end
rates and those covered by foreign exchange contracts, if any.
3. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the profit and loss
account except in cases where they relate to acquisition of fixed
assets in which case they are adjusted to the carrying cost of such
assets.
g. PROVISION FOR DOUBTFUL DEBTS:
The Company does not make any provision for doubtful debts, and follow
the practice of writing-off bad debts as and when it is determined.
h. SALES
Sales have been accounted for at net of discount for local sales and
for export sales on F.O.B. basis
i. EMPLOYEE RETIREMENT/OTHER BENEFITS
Annual Contributions in respect of Gratuity are made to the Life
Insurance Corporation of India under Group Gratuity Scheme and are
accounted for on payment basis.
Leave Encashment / Ex-gratia benefits payable to employees are
accounted for on accrual basis as per rules of the Company.
j. TAXATION
Provision for tax for the year comprises estimated current income-tax
determined to be payable in respect of taxable income. Deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods.
k. BORROWING COST
Borrowing cost that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized as part
of the cost of that asset. Other borrowing cost are recognized as
revenue expense in the period in which they are incurred.
l. DEFERRED REVENUE EXPENDITURE
Expenses incurred during the year and which is in the opinion of the
management of the Company that the benefit of such expenses will accrue
for a period of more than one year, such expenses are treated as
Deferred Revenue Expenditure to be amortized over a specified period;
so that the financial results of the Company reflects a true and fair
view.
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