Mar 31, 2015
I) Basis of Preparation of Financial Statements.
The Financial statements are prepared in accordance with the Generally
Accepted Accounting Principles in India, Accounting Standards notified
by the Companies (Accounting Standards) Rules 2006 which continues to
be applicable in respect of Section 133 of the Companies Act, 2013 read
with Rule 7 of the Companies (Accounts) Rules 2014 and relevant
provisions of the Companies Act, 2013.
The Company adopts the accrual concept in preparation of the accounts.
The preparation of accounts require the Management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
accounts and the reported income and expenses during the period. Actual
results could differ from these estimates. The accounting year of the
Company is a period of 12 months commencing from April 1 to March 31.
ii) Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles 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 /materialized.
iii) Revenue Recognition & other Accounting Policies
a. The Company recognies revenue on the sale of products when risks and
rewards of the ownership is transferred to the customer. Sales are
accounted net of amount recovered towards excise duty, sales tax and
sales returns.
b. Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c. Services are accounted for pro-rata over the period of contract.
d. Interest income is recognised on pro-rate basis. -
e. Dividend income is recognised when right to receive the dividend is
established.
iv) Tangible Assets & Depreciation
a) Tangible Assets are stated at cost of acquisition / construction,
cost of improvement and any attributable cost of bringing the asset to
its working condition for intended use or at revalued amounts wherever
such assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method as per useful life specified in
schedule II of the Companies Act, 2013.
v) Intangible Assets and Amortization:
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement or as per
management's best estimate of useful life but not exceeding 10 years.
SAP Software expenses are amortised over the period of five years.
vi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying fixed assets are capitalised as part of the
cost of the assets upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Statement of Profit and Loss in the year in which they are
incurred.
vii) Foreign Currency Transactions
(a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
(b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
(c) Monetary foreign currency items other than those covered by forward
contracts (i. e. receivable, payable, etc.) denominated in foreign
currency is reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
(d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits
a) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits:
i. Defined Contribution Plans: The Company's Statutory Provident Fund,
Employees' Super-annuation Fund and Employee State Insurance Scheme are
defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and : Employee State Insurance
beyond its contribution.
ii. Defined Benefit Plan: The Employees' Group Gratuity Fund is the
Company's defined benefit plan for which Company has taken Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India. Gratuity expenses are recognized at the present value of the
amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of defined benefits are charged
to the Statement of Profit and Loss. From March 05,2015, on account of
transfer of In-lnvitro Division, fund balance with LIC is also
transferred to transfee Company. Hence, subsequent to March 05,2015,
the gratuity is unfunded.
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Taxation
Income Tax comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the period. Current Tax is determined as the
amount of tax payable in respect of taxable income for the period as
per the enacted Tax Regulations. Deferred Tax Assets and Liabilities
are recognized for the future tax consequences of timing differences
between the book profit and tax profit. Deferred Tax Assets and
Liabilities other than on carry forward losses and unabsorbed
depreciation under tax laws are recognized when it is reasonably
certain that there will be future taxable income. Deferred Tax Asset on
carryforward losses and unabsorbed depreciation, if any, are recognized
when it is virtually certain that there will be future taxable profit.
Deferred Tax Assets and liabilities are measured using substantively
enacted tax rates. The effect on Deferred Tax Assets and Liabilities of
a change in tax rates is recognized in the Statement of Profit & Loss
in the period of substantive enactment of the change .
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement
of Profit and Loss as current tax. The Company recognizes the MAT
credit available as an asset only to the extent that there is
convincing evidence that the Company will pay the normal income tax
during the specified period i.e., period for which MAT credit is
allowed to be carried forward. In the year in which the Company
recognizes the MAT credit as an asset in accordance with the guidance
note on accounting for credit available in respect of Minimum
Alternative Tax under the Income Tax Act, 1961, the said asset is
created byway of credit to the Statement of Profit and Loss and shown
as "MAT Credit Entitlement.'' The Company reviews the "MAT
Credit Entitlement" asset at each reporting date and writes down the
asset to the extent the Company does not have convincing evidence that
it will pay normal tax during the specified period.
x) Valuation of stock
The mode of valuing closing stock is as under:
Inventory Type Mode of Valuation
Raw-Materials, Packing Materials & Other Materials At lower of cost or
net realizable value
Work-in-Process At lower of cost or net realizable value
Finished Goods/ Traded Goods for resale At lower of Cost or net
realizable value.
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
The cost is computed based on weighted average basis.
x) Leases
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases.
The initial direct cost of lease is charged to Statement of Profit and
Loss as and when incurred.
Lease rental are charged to Statement of Profit and loss on accrual
basis.
xi) Provision for Bad and Doubtful debts
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xii) Liquidated Damages
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of
liability/contingent liability is estimated on the basis of contracted
terms, facts of each case and to the extent of revenue recognised.
xiii) Impairment of Fixed Assets
Consideration is given at each Balance Sheet date to determine whether
there is any indication of carrying amount of the Company's fixed
assets. If there is any indication of impairment based on internal /
external factors, then asset's recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its estimated recoverable amount. The recoverable amount is
greater of the asset's net selling price and value in use. In assessing
the value in use, the estimated future cash flows are discounted to the
present value using the weighted average cost of capital. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
xiv) Investment
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xv) Research & Development
Revenue expenditure on research is charged as an expense in the year in
which it is incurred. Product development costs are expensed as
incurred unless technical and commercial feasibility of the project is
demonstrated, future economic benefits are probable, the company has an
intention and ability to complete and use or sell the product and the
costs can be measured reliably. Capital expenditure on research and
development is included as additions to fixed assets.
xvii) Provisions, contingent liabilities and contingent assets
Provisions:-
Provision is recognised when
a) The Company has a present obligation as a result of past event;
b) It is probable that an outflow of resources embodying economic
benefit is expected to settle the obligation,
c) A reliable estimate can be made for the amount of obligation.
d) Provision for warranty related costs are recognised when product is
sold. Provision is estimated based on historical experience and the
estimates are reviewed annually for any material changes in
assumptions.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Contingent liabilitv:-
Contingent Liability is disclosed in case of
a) A present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) A possible obligation unless the probability of outflow of resources
is remote.
Contingent assets:-
Contingent assets are neither recognised nor disclosed.
Provisions, Contingent Liabilities are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
xviii)Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
Cash comprises cash on hand and demand deposits with banks. Cash
Equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
xvii) Earnings per Share
Basic earnings per share is calculated by dividing the net profit after
tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares outstanding during
the period.
Diluted earnings per share is calculated by dividing the net profit
after tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares determined by
assuming conversion on exercise of conversion rights for all potential
dilutive securities
Mar 31, 2014
I) Basis of Preparation of Financial Statements :
The Financial statements are prepared in accordance with the Generally
Accepted Accounting Principles in India, Accounting Standards notified
by the Companies (Accounting Standards) Rules 2006, relevant provisions
of the Companies Act, 1956
The Company adopts the accrual concept in preparation of the accounts.
The preparation of accounts require the Management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
accounts and the reported income and expenses during the period. Actual
results could differ from these estimates. The accounting year of the
Company is a period of 12 months commencing from April 1 to March 31.
ii) Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles 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 /materialized.
iii) Revenue Recognition & other Accounting Policies
a. The Company recognises revenue on the sale of products when risks
and rewards of the ownership is transferred to the customer. Sales are
accounted net of amount recovered towards excise duty, sales tax and
sales returns.
b. Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c. Services are accounted for pro-rata over the period of contract.
d. Interest income is recognised on pro-rate basis.
e. Dividend income is recognised when right to receive the dividend is
established.
iv) Tangible Assets & Depreciation
a) Tangible Assets are stated at cost of acquisition / construction,
cost of improvement and any attributable cost of bringing the asset to
its working condition for intended use or at revalued amounts wherever
such assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method at the rates and in the manner
specified in schedule XIV of the Companies Act, 1956.
v) Intangible Assets and Amortization :
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement or as per
management''s best estimate of useful life but not exceeding 10 years.
SAP Software expenses are amortised over the period of five years.
vi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying fixed assets are capitalised as part of the
cost of the assets upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Statement of Profit and Loss in the year in which they are
incurred.
vii) Foreign Currency Transactions :
(a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
(b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
(c) Monetary foreign currency items other than those covered by forward
contracts (i. e. receivable, payable, etc.) denominated in foreign
currency is reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
(d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits :
a) Short Term Employee Benefits :
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits :
i. Defined Contribution Plans: The Company''s Statutory Provident Fund,
Employees'' Super-annuation Fund and Employee State Insurance Scheme are
defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and Employee State Insurance beyond
its contribution.
ii. Defined Benefit Plan: The Employees'' Group Gratuity Fund is the
Company''s defined benefit plan for which Company has taken Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India. Gratuity expenses are recognized at the present value of the
amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of defined benefits are charged
to the Statement of Profit and Loss.
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Taxation :
Income Tax comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the period. Current Tax is determined as
the amount of tax payable in respect of taxable income for the period
as per the enacted Tax Regulations.
Deferred Tax Assets and Liabilities are recognized for the future tax
consequences of timing differences between the book profit and tax
profit. Deferred Tax Assets and Liabilities other than on carry forward
losses and unabsorbed depreciation under tax laws are recognized when
it is reasonably certain that there will be future taxable income.
Deferred Tax Asset on carry forward losses and unabsorbed depreciation,
if any, are recognized when it is virtually certain that there will be
future taxable profit. Deferred Tax Assets and liabilities are measured
using substantively enacted tax rates. The effect on Deferred Tax
Assets and Liabilities of a change in tax rates is recognized in the
Statement of Profit & Loss in the period of substantive enactment of
the change.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives rise to future economic benefits in the form of adjustment of
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal tax in the future
period.
x) Valuation of stock :
The mode of valuing closing stock is as under :
Inventory Type Mode of Valuation
Raw-Materials, Packing
Materials & Other Materials At lower of cost or net realizable value
Work-in-Process At lower of cost or net realizable value
Finished Goods/
Traded Goods for resale At lower of Cost or net realizable value.
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
The cost is computed based on weighted average basis.
x) Leases
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases.
The initial direct cost of lease is charged to Statement of Profit and
Loss as and when incurred.
Lease rental are charged to Statement of Profit and loss on accrual
basis.
xi) Provision for Bad and Doubtful debts
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xii) Liquidated Damages
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of
liability/contingent liability is estimated on the basis of contracted
terms, facts of each case and to the extent of revenue recognised.
xiii) Impairment of Fixed Assets
Consideration is given at each Balance Sheet date to determine whether
there is any indication of carrying amount of the Company''s fixed
assets. If there is any indication of impairment based on internal /
external factors, then asset''s recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its estimated recoverable amount. The recoverable amount is
greater of the asset''s net selling price and value in use. In assessing
the value in use, the estimated future cash flows are discounted to the
present value using the weighted average cost of capital. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
xiv) Investment
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xv) Research & Development
Revenue expenditure on research is charged as an expense in the year in
which it is incurred. Product development costs are expensed as
incurred unless technical and commercial feasibility of the project is
demonstrated, future economic benefits are probable, the company has an
intention and ability to complete and use or sell the product and the
costs can be measured reliably. Capital expenditure on research and
development is included as additions to fixed assets.
xvii) Provisions, contingent liabilities and contingent assets
Provisions :
Provision is recognised when
a) The Company has a present obligation as a result of past event;
b) It is probable that an outflow of resources embodying economic
benefit is expected to settle the obligation,
c) A reliable estimate can be made for the amount of obligation.
d) Provision for warranty related costs are recognised when product is
sold. Provision is estimated based on historical experience and the
estimates are reviewed annually for any material changes in
assumptions.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Contingent liability :
Contingent Liability is disclosed in case of
a) A present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) A possible obligation unless the probability of outflow of resources
is remote.
Contingent assets :
Contingent assets are neither recognised nor disclosed.
Provisions, Contingent Liabilities are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
xviii) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
Cash comprises cash on hand and demand deposits with banks. Cash
Equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
xix) Earnings per Share
Basic earnings per share is calculated by dividing the net profit after
tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares outstanding during
the period.
Diluted earnings per share is calculated by dividing the net profit
after tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares determined by
assuming conversion on exercise of conversion rights for all potential
dilutive securities.
Mar 31, 2013
I) Basis of Accounting :
The financial statements are prepared under historical cost convention
on accrual basis of accounting and in accordance with the Accounting
Standards prescribed under the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956.
ii) Use of Estimates :
The presentation of financial statements in conformity with the
generally accepted accounting principles 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 /materialized.
iii) Revenue Recognition & other Accounting Policies :
a. The Company recognise revenue on the sale of products when risks
and rewards of the ownership is transfer to the customer. Sales are
accounted net of amount recovered towards excise duty, sales tax and
sales returns.
b. Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c. Services are accounted for pro-rata over the period of contract.
iv) Fixed Assets & Depreciation :
a) Fixed Assets are stated at cost of acquisition / construction, cost
of improvement and any attributable cost of bringing the asset to its
working condition for intended use or at revalued amounts wherever such
assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method at the rates and in the manner
specified in schedule XIV of the Companies Act, 1956.
v) Intangible Assets and Amortization :
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement or as per
management''s best estimate of useful life but not exceeding 10 years.
SAP Software expenses are amortised over the period of five years.
vi) Borrowing Cost :
Borrowing costs that are attributable to the acquisition or
construction of qualifying fixed assets are capitalised as part of the
cost of the assets upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Statement of Profit and Loss in the year in which they are
incurred.
vii) Foreign Currency Transactions :
(a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
(b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
(c) Monetary foreign currency items other than those covered by forward
contracts ( i. e. receivable, payable, etc.) denominated in foreign
currency are reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
(d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits
a) Short Term Employee Benefits :
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits :
i. Defined Contribution Plans: The Company''s Statutory Provident Fund,
Employees'' Super-annuation Fund and Employee State Insurance Scheme are
defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and Employee State Insurance beyond
its contribution.
ii. Defined Benefit Plan :
The Employees'' Group Gratuity Fund is the Company''s defined benefit
plan for which Company has taken Group Gratuity cum Life Insurance
Policy from Life Insurance Corporation of India. Gratuity expenses are
recognized at the present value of the amount payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of defined benefits are charged to the Statement of Profit and Loss.
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Taxation :
Income Tax comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the period. Current Tax is determined as the
amount of tax payable in respect of taxable income for the period as
per the enacted Tax Regulations
Deferred Tax Assets and Liabilities are recognized for the future tax
consequences of timing differences between the book profit and tax
profit. Deferred Tax Assets and Liabilities other than on carry forward
losses and unabsorbed depreciation under tax laws are recognized when
it is reasonably certain that there will be future taxable income.
Deferred Tax Asset on carry forward losses and unabsorbed depreciation,
if any, are recognized when it is virtually certain that there will be
future taxable profit. Deferred Tax Assets and liabilities are measured
using substantively enacted tax rates. The effect on Deferred Tax
Assets and Liabilities of a change in tax rates is recognized in the
Statement of Profit & Loss in the period of substantive enactment of
the change
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives rise to future economic benefits in the form of adjustment of
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal tax in the future
period
x) Valuation of stock:
The mode of valuing closing stock is as under :
Inventory Type : Mode of Valuation
Raw-Materials, Packing Materials & Other Materials At lower of cost or
net realizable value
Work-in-Process At lower of cost or net realizable value
Finished Goods/ Traded Goods for resale At lower of Cost or net
realizable value.
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
The cost is computed based on weighted average basis.
xi) Leases :
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases.
The initial direct cost of lease is charged to Statement of Profit and
Loss as and when incurred.
Lease rental are charged to Statement of Profit and loss on accrual
basis.
xii) Provision for Bad and Doubtful debts :
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xiii) Liquidated Damages:
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of
liability/contingent liability is estimated on the basis of contracted
terms facts of each case and to the extent of revenue recognised
xiv) Impairment of Fixed Assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of carrying amount of the Company''s fixed
assets. If there is any indication of impairment based on internal /
external factors, then asset''s recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its estimated recoverable amount. The recoverable amount is
greater of the asset''s net selling price and value in use. In assessing
the value in use, the estimated future cash flows are discounted to the
present value using the weighted average cost of capital. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
xv) Investment :
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xvi) Research & Development :
Revenue expenditure on research is charged as an expense in the year in
which it is incurred. Product development costs are expensed as
incurred unless technical and commercial feasibility of the project is
demonstrated, future economic benefits are probable, the company has an
intention and ability to complete and use or sell the product and the
costs can be measured reliably. Capital expenditure on research and
development is included as additions to fixed assets.
xvii) Provisions, contingent liabilities and contingent assets :
Provisions :
Provision is recognised when
a) The Company has a present obligation as a result of past event;
b It is probable that an outflow of resources embodying economic
benefit is expected to settle the obligation, c A reliable estimate can
be made for the amount of obligation.
d Provision for warranty related costs are recognised when product is
sold. Provision is estimated based on historical experience and the
estimates are reviewed annually for any material changes in
assumptions.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Contingent liability :
Contingent Liability is disclosed in case of
a) A present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to
settle the obligation. b)A possible obligation unless the probability
of outflow of resources is remote.
Contingent assets :
Contingent assets are neither recognised nor disclosed.
Provisions, Contingent Liabilities are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
xviii) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
Cash comprises cash on hand and demand deposits with banks. Cash
Equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
xix) Earnings per Share
Basic earnings per share is calculated by dividing the net profit after
tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares outstanding during
the period.
Diluted earnings per share is calculated by dividing the net profit
after tax for the period attributable to the equity shareholders of the
Company by weighted average number of equity shares determined by
assuming conversion on exercise of conversion rights for all potential
dilutive securities
Mar 31, 2012
I) Basis of Accounting.
The financial statements are prepared under historical cost convention
on accrual basis of accounting and in accordance with the Accounting
Standards prescribed under the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956.
ii) Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles 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 /materialized.
iii) Revenue Recognition & other Accounting Policies
a) Sales are recognized when goods are dispatched. Sales are accounted
net of amount recovered towards excise duty, sales tax and sales
returns.
b) Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c) Services are accounted for pro-rata over the period of contract.
iv) Fixed Assets & Depreciation.
a) Fixed Assets are stated at cost of acquisition / construction, cost
of improvement and any attributable cost of bringing the asset to its
working condition for intended use or at revalued amounts wherever such
assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method at the rates and in the manner
specified in schedule XIV of the Companies Act, 1956.
v) Intangible Assets and Amortization :
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement. SAP Software
expenses are amortised over the period of five years.
vi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying fixed assets are capitalised as part of the
cost of the assets upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
vii) Foreign Currency T ransactions.
a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
c) Monetary foreign currency items other than those covered by forward
contracts ( i. e. receivable, payable, etc.) denominated in foreign
currency are reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits
a) Short Term Employee Benefits :
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits :
i. Defined Contribution Plans : The Company's Statutory Provident Fund,
Employees' Super- annuation Fund and Employee State Insurance Scheme
are defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and Employee State Insurance beyond
its contribution.
ii. Defined Benefit Plan: The Employees' Group Gratuity Fund is the
Company's defined benefit plan for which Company has taken Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India. Gratuity expenses are recognized at the present value of the
amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of defined benefits are charged
to the profit and loss account..
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Taxation
Current Tax Provision
Provision for Income Tax is determined in accordance with the
provisions of Income Tax Act, 1961.
Deferred Tax Provision
Deferred tax is recognised, on timing differences, being the difference
between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
x) Valuation of stock.
The mode of valuing closing stock is as under :
Inventory Type
Mode of Valuation
Raw Materials, Packing Materials & Other Materials
At lower of cost or net realizable value
Work-in-Process
At lower cost or ner realizable value
Finished Goods / Traded Goods for resale
At lower of cost or net realizable value
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
xi) Leases:
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases.
The initial direct cost of lease is charged to profit and loss account
as and when incurred.
Lease rental are charged to Profit and loss Account on accrual basis.
xii) Provision for Bad and Doubtful debts.
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xiii) Liquidated Damages:
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of
liability/contingent liability is estimated on the basis of contracted
terms, facts of each case and to the extent of revenue recognised.
xiv) Impairment of Fixed Assets
Consideration is given at each Balance Sheet date to determine whether
there is any indication of carrying amount of the Company's fixed
assets. If there is any indication of impairment based on internal /
external factors, then asset's recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its estimated recoverable amount. The recoverable amount is
greater of the asset's net selling price and value in use. In assessing
the value in use, the estimated future cash flows are discounted to the
present value using the weighted average cost of capital. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
xv) Investment
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xvi) Research & Development
Revenue expenditure on research is charged as an expense in the year in
which it is incurred. Product development costs are expensed as
incurred unless technical and commercial feasibility of the project is
demonstrated, future economic benefits are probable, the company has an
intention and ability to complete and use or sell the product and the
costs can be measured reliably. Capital expenditure on research and
development is included as additions to fixed assets.
xvii) Provisions, contingent liabilities and contingent assets
Provisions:-
Mar 31, 2011
I) Basis of Accounting
The financial statements are prepared under historical cost convention
on accrual basis of accounting and in accordance with the Accounting
Standards prescribed under the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956.
ii) Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles 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 /materialized.
iii) Revenue Recognition & Other Accounting Policies
a. Sales are recognized when goods are dispatched. Sales are accounted
net of amount recovered towards excise duty, sales tax and sales
returns.
b. Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c. Services are accounted for pro-rata over the period of contract.
iv) Fixed Assets & Depreciation.
a) Fixed Assets are stated at cost of acquisition / construction, cost
of improvement and any attributable cost of bringing the asset to its
working condition for intended use or at revalued amounts wherever such
assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method at the rates and in the manner
specified in schedule XIV of the Companies Act, 1956.
v) Intangible Assets and Amortization:
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement. SAP Software
expenses are amortised over the period of five years.
vi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying fixed assets are capitalised as part of the
cost of the assets upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
vii) Foreign Currency Transactions.
(a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
(b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
(c) Monetary foreign currency items other than those covered by forward
contracts ( i. e. receivable, payable, etc.) denominated in foreign
currency are reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
(d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits
a) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits:
i. Defined Contribution Plans : The Company's Statutory Provident Fund,
Employees' Super-annuation Fund and Employee State Insurance Scheme are
defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and Employee State Insurance beyond
its contribution.
ii. Defined Benefit Plan: The Employees' Group Gratuity Fund is the
Company's defined benefit plan for which Company has taken Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India. Gratuity expenses are recognized at the present value of the
amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of defined benefits are charged
to the profit and loss account..
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Taxation
Current Tax Provision
Provision for Income Tax is determined in accordance with the
provisions of Income Tax Act, 1961.
Deferred Tax Provision
Deferred tax is recognised, on timing differences, being the difference
between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
x) Valuation of Stock:
The mode of valuing closing stock is as under:
Inventory Type Mode of Valuation
Raw-Materials,Packing Materials At moving weighted average
& Other Materials cost basis
Work-in-Process At cost
Finished Goods/ Traded Goods At lower of Cost or net
for resale realizable value.
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
xi) Leases:
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. The initial direct cost of
lease is charged to profit and loss account as and when incurred.
Lease rental are charged to Profit and loss Account on accrual basis.
xii) Provision for Bad and Doubtful debts:
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xiii) Liquidated Damages:
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of
liability/contingent liability is estimated on the basis of contracted
terms, facts of each case and to the extent of revenue recognised.
xiv) Impairment of Fixed Assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of carrying amount of the Company's fixed
assets. If there is any indication of impairment based on internal /
external factors, then asset's recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its estimated recoverable amount. The recoverable amount is
greater of the asset's net selling price and value in use. In assessing
the value in use, the estimated future cash flows are discounted to the
present value using the weighted average cost of capital. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
xv) Investment:
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xvi) Research & Development:
Revenue expenditure on research and development is charged as an
expense in the year in which it is incurred. Capital expenditure on
research and development is included as additions to fixed assets.
xvii) Provisions, contingent liabilities and contingent assets
Provisions:-
Provision is recognised when
a) The Company has a present obligation as a result of past event;
b) It is probable that an outflow of resources embodying economic
benefit is expected to settle the obligation,
c) Areliable estimate can be made for the amount of obligation.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Contingent liability:-
Contingent Liability is disclosed in case of
a) A present obligation arising from a past event, when it is not
probable that an outflow of
resources will be required to settle the obligation.
b) Apossible obligation unless the probability of outflow of resources
is remote.
Contingent assets:-
Contingent assets are neither recognised nor disclosed.
Provisions, Contingent Liabilities are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
Mar 31, 2010
I) Basis of Accounting
The financial statements are prepared under historical cost convention
on accrual basis of accounting and in accordance with the Accounting
Standards prescribed under the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956.
ii) Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles require 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 /materialized.
iii) Revenue Recognition & other Accounting policies
a. Sales are recognized when goods are dispatched. Sales are accounted
net of amount recovered towards sales tax and sales returns. Discount,
rate difference and excise duty paid are shown by way of further
deduction from sales.
b. Sales returns are accounted on actual receipt of return goods /
settlement of claims.
c. Services are accounted for pro-rata over the period of contract.
d. Interest is recognized on time proportion basis taking into account
the amount outstanding and rate of interest applicable.
e. Export Incentive under Focus Market Scheme is recognized as and
when granted.
f. Rate differences are accounted on actual settlement with the
parties.
g. Insurance and other claims are accounted on cash basis. h. Custom
Duties are accounted on cash basis.
i. I ncentive to Field staff is accounted on settlement of claims.
j. Ex-gratia to employees covered under the Bonus Act is accounted on
cash basis.
k. Lease rent/License fees are accounted on accrual basis.
I. Leave Travel Allowance is accounted as and when claimed and paid.
iv) Fixed Assets & Depreciation
a) Fixed Assets are stated at cost of acquisition / construction, cost
of improvement and any attributable cost of bringing the asset to its
working condition for intended use or at revalued amounts wherever such
assets have been revalued less accumulated depreciation.
b) Depreciation on all assets except Buildings at Sachin is provided on
written down value method and Depreciation on Buildings at Sachin is
provided on Straight line Method at the rates and in the manner
specified in schedule XIV of the Companies Act 1956.
v) Intangible assets and amortization
Intangible assets are measured at cost. Lump sum fees for technical
know-how is amortised over the period of agreement. Software expenses
are amortised over the period of five years.
vi) Borrowing Cost
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalised as part of the cost of the
assets, upto the date the asset is put to use. All other borrowing
costs are charged to the Profit and Loss Account in the year in which
they are incurred.
vii) Foreign Currency Transactions
a) Transactions other than those covered by forward contracts are
accounted at exchange rates prevailing on the date of transaction.
b) Forward premium in respect of forward exchange contract is
recognised over the life of contract.
c) Monetary foreign currency items other than those covered by forward
contracts ( i. e. receivable, payable, etc.) denominated in foreign
currency are reported using the closing exchange rate on each balance
sheet date. Exchange difference is recognised as income/expense.
d) Non-monetary foreign currency items are carried at historical cost
determined on the date of transaction.
viii) Employee Benefits
a) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and the expected cost of bonus are recognized
in the period in which an employee renders the related services.
b) Post-Employment Benefits
i. Defined Contribution Plans : The Companys Statutory Provident Fund,
Employees Super-annuation Fund and Employee State Insurance Scheme are
defined contribution plans. The Super-annuation fund created by the
company has taken Super-annuation cum life insurance policy from Life
Insurance Corporation of India. The company has no further obligation
for Super-annuation, Provident Fund and Employee State Insurance beyond
its contribution.
ii. Defined Benefit Plan : The Employees Group Gratuity Fund is the
Companys defined benefit plan for which Company has taken Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India. Gratuity expenses are recognized at the present value of the
amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of defined benefits are charged
to the profit and loss account.
iii. Provision for accrued leave encashment is provided for on the
basis of actuarial valuations made at the year end.
ix) Cenvat Credit
Cenvat credit available on purchase of materials, purchase of capital
goods and input services is not charged to cost of material, capital
goods and services. Cenvat credit availed is accounted by way of
adjustment against excise duty payable on dispatch of finished goods or
service tax payable on rendering of services.
x) Taxation
Current Tax Provision
Provision for Income Tax and Fringe Benefit Tax is determined in
accordance with the provisions of the Income Tax Act, 1961.
Deferred Tax Provision
Deferred tax is recognised, on timing differences, being the difference
between the taxable,incorne and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
xi) Valuation of stock
The mode of valuing closing stock is as under :-
Raw-Materials, Packing Materials
and Other Matrtials : at moving weighted average cost basis
Work-in-Process : at Cost.
Finished Goods/
Traded Goods : at lower of Cost or net realizable value.
The cost for the purpose of valuation of Finished Goods and
work-in-process includes material cost, direct conversion cost and
appropriate share of overheads incurred for bringing the goods to their
present location and condition plus excise duty wherever applicable.
xii) Leases
Assets acquired on lease and assets given on lease where a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. The initial direct cost of
lease is charged to profit and loss account as and when incurred. Lease
rental are charged to Profit and loss Account on accrual basis.
xiii) Provision for Bad and Doubtful debts
Provision is made in accounts for Bad and Doubtful Debts as and when
the same in opinion of the management are considered doubtful of
recovery.
xiv) Liquidated Damages
Liabilities in respect of Liquidated Damages are provided if and to the
extent, not disputed by the Company. Liquidated Damages disputed by the
Company are treated as contingent liability. The amount of liability
and contingent liability is estimated on the basis of contracted terms,
facts of each case and to the extent of revenue recognised.
xv) Impairment of Fixed Assets
Consideration is given at each Balance Sheet date to determine whether
there is any indication for impairment of carrying amount of the
Companys fixed assets. If there is any indication of impairment based
on internal / external factors, then assets recoverable amount is
estimated. An impairment loss is recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. Previously recognized impairment loss is further
provided or reversed depending on changes in circumstances.
xvi) Investment
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value computed separately in respect of each category of investment.
xvii) Research & Development
Revenue expenditure on research and development is charged as an
expense in the year in which it is incurred. Capital expenditure on
research and development is included as additions to fixed assets.
xviii) Provisions, contingent liabilities and contingent assets
Provisions:-
Provision is recognised when
a) The Company has a present obligation as a result of past event;
b) It is probable that an outflow of resources embodying economic
benefit is expected to settle the obligation, and
c) A reliable estimate can be made for the amount of obligation.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Contingent liability:-
Contingent Liability is disclosed in case of
a) A present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation,
b) A possible obligation unless the probability of outflow of resources
is remote.
Contingent assets:-
Contingent assets are neither recognised nor disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate.