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Accounting Policies of Transcorp International Ltd. Company

Mar 31, 2017

1. Corporate Information

Company is a public company domiciled in India. Its shares are listed on Bombay Stock Exchange. Company is mainly engaged in the business of money changing and money transfer i.e. financial Services. These activities are carried on under the permissions granted by RBI.

2. Basis of Preparation of Accounts

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on accrual basis and under the historical cost convention excepting revalued assets. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise mentioned.

3. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgement, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on the management’s best knowledge of the current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future period.

4. Recognition of Income/Expenditure

Income and Expenditure is recognized on accrual basis of accounting.

Revenue from sale of traded goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery. Revenue from services is recognized on rendering the services. Company collects service tax on behalf of the Government and therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from revenue.

5. Fixed Assets and Depreciation

A. Fixed assets including intangible assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset. In case of revaluation at fair value, revaluation surplus is credited to revaluation reserve. On disposal/transfer/ de-recognition of the fixed assets, difference between net disposal proceeds and the carrying amount of the asset is recognized in the statement of profit and loss.

B. Depreciation on fixed assets is calculated on straight line method as per the methodology provided and useful life of the asset mentioned in Schedule II to the Companies Act, 2013. Carrying amount in respect of assets with remaining useful life being NIL at the beginning of the year, has been recognized in the opening balance of retained earnings at the year end. Leasehold land is not written off over the period of lease. Intangible assets are amortized/depreciated on a straight line basis over the estimated useful life. The company uses a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when asset is available for use.

c. Impairment, if any, is assessed and given effect at each reporting date

6. Inventory Valuation

Stock in trade is valued at lower of cost and net realizable value. As company’s stock in trade comprise of foreign currencies and paid documents, net realizable value is calculated using exchange rate prevailing at the end of accounting year.

7. Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline is not temporary in nature.

8. Taxation:

(A). The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

(B). Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(C). Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D). Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

(E) Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. MAT credit available is recognized as an asset only to the extent, there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

9. Dividend Income:

Dividend on investment is accounted for as and when the right to receive the same is established.

10. Proposed Dividend:

Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting.

11. Employees Benefits:

(a) Short term employee’s benefits like salaries, non-vesting compensated absences and various incentives are recognized as expenses in the year of their becoming due and use.

(b) Long term benefits which are in the nature of defined benefits obligation, in respect of

(1) Gratuity liability, as per actuarial valuation is recognized at the end of each reporting year in the statement of financial position based on the present value of the defined benefits obligation using Projected Unit Credit Method.

(2) The Provident Fund is funded through Provident Fund Trust and Company’s contribution is charged to statement of profit and loss each year.

12. Borrowing costs:

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with arrangement of borrowings. Borrowing cost directly attributable to the acquisition , construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as a part of cost of the respective asset. All other borrowing costs are expensed in the period they occur.

13. Foreign Currency Transactions:

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the yearend are treated as closing stock, and in accordance with Accounting Standard-11 (Accounting for the effects of changes in foreign exchange rates), issued by The Institute Of Chartered Accountants Of India are valued at the closing market rate, which is the general buying rate at the yearend in case cost is higher than the value so arrived at.

Current Liabilities in foreign currencies at close of year are converted at the closing settlement rate, on the date of the Balance Sheet. Receivables/payables in foreign currencies are converted at the closing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Statement of Profit and Loss except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

14. Contingent liabilities and Provisions:

The Company does not recognize a contingent liability but disclose its existence in the financial statements. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

15. Earning per share:

Basic earning per share are calculated by dividing net profit or loss for the period attributable to the equity shareholders by number of equity shares outstanding during the year.

16. Leases:

Operating lease payment and income are recognised in the statement of profit and loss on over the lease term


Mar 31, 2015

1. Corporate Information

Company is a public company domiciled in India. Its shares are listed on Bombay Stock Exchange. Company is mainly engaged in the business of money changing and money transfer i.e. financial Services. These activities are carried on under the permissions granted by RBI.

2. Basis of Preparation of Accounts

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on accrual basis and under the historical cost convention excepting revalued assets. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise mentioned.

3. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgement, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on the management's best knowledge of the current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future period.

4. Recognition of Income/Expenditure

Income and Expenditure is recognized on accrual basis of accounting.

Revenue from sale of traded goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery. Revenue from services is recognized on rendering the services. Company collects service tax on behalf of the Government and therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from revenue.

5. Fixed Assets and Depreciation

A. Fixed assets including intangible assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset. In case of revaluation at fair value, revaluation surplus is credited to revaluation reserve. On disposal/transfer/ de-recognition of the fixed assets, difference between net disposal proceeds and the carrying amount of the asset is recognized in the statement of profit and loss.

B. Depreciation on fixed assets is calculated on straight line method as per the methodology provided and useful life of the asset mentioned in Schedule II to the Companies Act, 2013. Carrying amount in respect of assets with remaining useful life being NIL at the beginning of the year, has been recognized in the opening balance of retained earnings at the year end. Leasehold land is not written off over the period of lease. Intangible assets are amortized/depreciated on a straight line basis over the estimated useful life. The company uses a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when asset is available for use.

C. Impairment, if any, is assessed and given effect at each reporting date

6. Inventory Valuation

Stock in trade is valued at lower of cost and net realizable value. As company's stock in trade comprise of foreign currencies and paid documents, net realizable value is calculated using exchange rate prevailing at the end of accounting year.

7. Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline is not temporary in nature.

8. Taxation:

(A) The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

(B) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(C)Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

(E) Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. MAT credit available is recognized as an asset only to the extent, there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

9. Dividend Income:

Dividend on investment is accounted for as and when the right to receive the same is established.

10. Proposed Dividend:

Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting.

11. Employees Benefits:

(a) Short term employee's benefits like salaries, non-vesting compensated absences and various incentives are recognized as expenses in the year of their becoming due and use.

(b) Long term benefits which are in the nature of defined benefits obligation, in respect of

(1) Gratuity liability, as per actuarial valuation is recognized at the end of each reporting year in the statement of financial position based on the present value of the defined benefits obligation using Projected Unit Credit Method.

(2) The Provident Fund is funded through Provident Fund Trust and Company's contribution is charged to statement of profit and loss each year.

12. Borrowing costs:

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with arrangement of borrowings. Borrowing cost directly attributable to the acquisition , construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as a part of cost of the respective asset. All other borrowing costs are expensed in the period they occur.

13. Foreign Currency Transactions:

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the yearend are treated as closing stock, and in accordance with Accounting Standard—11 (Accounting for the effects of changes in foreign exchange rates), issued by The Institute Of Chartered Accountants Of India are valued at the closing market rate, which is the general buying rate at the yearend in case cost is higher than the value so arrived at.

Current Liabilities in foreign currencies at close of year are converted at the closing settlement rate, on the date of the Balance Sheet. Receivables/payables in foreign currencies are converted at the closing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Statement of Profit and Loss except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

14. Contingent liabilities and Provisions:

The Company does not recognize a contingent liability but disclose its existence in the financial statements. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

15. Earning per share:

Basic earning per share are calculated by dividing net profit or loss for the period attributable to the equity shareholders by weighted average of number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for the events such as bonus issue, bonus element in a right issue, share split, and reverse share split that have changed the number of equity shares outstanding, without a corresponding change in resources.

16. Leases:

Operating lease payment and income are recognised in the statement of profit and loss on over the lease term


Mar 31, 2014

1. Basis of Preparation of Accounts

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India and comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules,2006 as amended and the relevant provisions of Companies Act,1956. The financial statements have been prepared on accrual basis and under the historical cost convention excepting revalued assets.

2. Recognition of Income/Expenditure

Income and Expenditure is recognized on accrual basis of accounting.

Revenue from sale of traded goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery. Revenue from services is recognized on rendering the services.

3. Fixed Assets and Depreciation

A. Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price , borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset. In case of revaluation at fair value, revaluation surplus is credited to revaluation reserve. On disposal/transfer/derecognition of the fixed assets, difference between net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit and loss.

B. Depreciation on fixed assets is calculated on the straight line basis using the rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5000/- are written off on pro-rata basis in the year of acquisition. However depreciation on account of appreciation upon revaluation is adjusted by transfer from revaluation reserve.

4. Inventory Valuation

Stock in trade is valued at lower of cost and net realisable value. As company''s stock in trade comprise of foreign currencies and paid documents, net realisable value is calculated using exchange rate prevailing at the end of accounting year.

5. Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline is not temporary in nature.

6. Taxation:

(A) The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

(B) . Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(C) . Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D) . Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

(E) Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. MAT credit available is recognized as an asset only to the extent, there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

7. Dividend Income :

Dividend on investment is accounted for as and when the right to receive the same is established.

8. Proposed Dividend:

Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting.

9. Employees Benefits :

(a) Short term employees benefits like salaries and various incentives are recognized as expenses in the year of their becoming due and payable.

(b) Long term benefits which are in the nature of defined benefits obligation, in respect of

(1) Gratuity liability as per actuarial valuation is recognized at the end of each reporting year in the statement of financial position based on the present value of the defined benefits obligation using Projected Unit Credit Method.

(2) The Provident Fund is funded through Provident Fund Trust and Company''s contribution is charged to statement of profit and loss each year.

10. Foreign Currency Transactions:

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the year end are treated as closing stock, and in accordance with Accounting Standard—11 Accounting for the effects of changes in foreign exchange rates), issued by The Institute Of Chartered Accountants Of India are valued at the closing market rate, which is the general buying rate at the year end.

Current Liabilities in foreign currencies at close of year are converted at the closing settlement rate, on the date of the Balance Sheet. Receivables/payables in foreign currencies are converted at the closing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Statement of Profit and Loss except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

11. Contingent liabilities and Provisions: The Company does not recognize a contingent liability but disclose its existence in the financial statements. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2013

1. Basis of Preparation of Accounts

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India and comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules,2006 as amended and the relevant provisions of Companies Act, 1956. The financial statements have been prepared on accrual basis and under the historical cost convention excepting revalued assets.

2. Recog niUon of Lncome/Expendihi re

Income and Expenditure is recognized on accrual basis of accounting.

Revenue from sale of traded goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery. Revenue from services Is recognized on rendering the services.

3. Fixed Asset! and Depreciation

A. Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to Hs working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure Is added to book value only tf ft Increases the future benefits from the existing asset. Ir case of revaluation at fair value, revaluation surplus is credited to revaluation reserve. On disposal/transfer/derecognition of the fixed assets, difference between net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit and loss.

B. Depreciation on fixed assets is calculated on the straight line basis using the rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5000/- are written off on pro-rata basis In the year of acquisition. However depredation on account of appreciation upon revaluation is adjusted by transfer from revaluation reserve.

4. InventoryValuation

Stock in trade is valued at lower of cost and net realisable value. As company''s stock in trade comprise of foreign currencies and paid documents, net realisable value is calculated using exchange rate prevailing attheendofaccountingyear.

5. Investments

Long term investments are stated at cost Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline Is not temporary In nature.

6. Taxation:

(A). The current chargefor income tax is calculated in accordance with the relevant tax regulations applicable to the Company. (B). Deferred tax Is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable Income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(c). Deferred tax assets are not recognized unless there Is virtual certainty that sufficient future taxable Income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D). Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

(B Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. MAT credit available is recognized as an Bsset only to the extent, there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

7. Dividend Income:

Dividend on investment is accounted for as and when the right to receive the same is established.

8. Proposed Dividend:

Dividend as proposed by the Board of Directors Is provided in the books of account, pending approval at the Annual General Meeting.

9. Employees Benefits:

(a) Short term employees benefits like salaries and various incentives are recognized as expenses in the year of their becoming due and payable.

(b) Long term benefits which are In the nature of defined benefits obligation, In respect of CD Gratuity liability as peractuarlal valuation isrecognlzedattheend of each reportlngyearlnthestatementofflnandal position based onthe present value of the defined benefits obligation using Projected Unit Credit Method. (2) The Provident Fund Is funded through Provident Fund Trust and Company''s contribution Is charged to statement of profit and loss each year.

10. Foreign Currency Transactions;

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the year end are treated as closing stock, and in accordance with Accounting Standard—11 Accounting for the effects of changes in foreign exchange rates), issued by ThelnstrtuteOf Chartered AcoountantsOf India are valued at thedosing market rate, which is the general buying rate at the year end.

Current Liabilities In foreign currendes at close of year are converted at the closing settlement rate, on the date of the Balance Sheet. Receivables/payables in foreign currencies are converted at the dosing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Statement of Profit and Loss except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

11. Contingent liabilities and Provisions: The Company does not recognize a contingent liability but disdose its existence in the financial statements. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2011

1. Basis of preparation of Accounts:

The accounts of the company are prepared under the historical cost convention except for revaluation of certain fixed assets and in accordance with the applicable accounting standards in India.

2. Recognition of Income/Expenditure:

Income & expenditure is recognized on accrual basis of accounting. Income from foreign currency and paid documents is accounted for net of sales and purchases of foreign currencies and paid documents after adjusting their closing stock.

3. Fixed Assets & Depreciation :

A. Fixed Assets are stated at cost and includes amount added on revaluation, all related expenses and borrowing cost, where applicable less accumulated depreciation.

B. Depreciation :

Depreciation on Fixed Assets has been provided on the Straight Line Method at the rates and the manner prescribed under schedule XIV to the Companies Act, 1956. Assets costing up to Rs. 5000/- are written off on pro-rata basis in the year of acquisition. However, depreciation on account of appreciation upon revaluation is adjusted by transfer from revaluation reserve.

4 Foreign Currency Transactions:

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the year end are treated as monetary assets, in accordance with Accounting Standard–11

(Accounting for the effects of changes in foreign exchange rates), issued by The Institute Of Chartered Accountants Of India and are valued at the closing market rate, which is the general buying rate at the year end.

Current Liabilities in foreign currencies at close of year are converted at the closing settlement rate, on the date of the Balance Sheet. Receivables/payables in foreign currencies are converted at the closing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Profit and Loss Account except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

5 Investments :

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline is not temporary in nature.

6. Taxation:

(A). The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

(B). Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(C). Deferred tax assets are not recognized on unabsorbed depreciation & carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D). Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

7. Dividend Income :

Dividend on investment is accounted for as and when the right to receive the same is established.

8. Proposed Dividend:

Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting.

Employee Benefits:

a) Short term employee benefits like salaries & various incentives are recognized as expenses in year of their becoming due and payable.

b) Long term employee benefits which are in the nature of defined benefit obligation, in respect of

(1) Gratuity liability as per actuarial valuation is recognized at the end of each reporting year in the statement of financial position based on the present value of the defined benefit obligation using Projected Unit Credit Method.

(2) The Provident Fund is funded through Provident Fund Trust and Company's contribution is charged to profit and loss Account each year.


Mar 31, 2010

1. Basis of preparation of Accounts:

The accounts of the company are prepared under the historical cost convention except for revaluation of certain fixed assets and in accordance with the applicable accounting standards in India.

2. Recognition of Income/Expenditure:

Income & expenditure is recognized on accrual basis of accounting. Income from foreign currency and paid documents is accounted for net of sales and purchases of foreign currencies and paid documents after adjusting their closing stock.

3. Fixed Assets & Depreciation:

a. Fixed Assets are stated at cost and includes amount added on revaluation, inclusive of all related expenses and borrowing cost, where applicable less accumulated depreciation.

b. Depreciation:

Depreciation on Fixed Assets has been provided on the Straight Line Method at the rates and the manner prescribed under schedule XTV to the Companies Act, 1956. Assets costing up to Rs. 5000/- are written off on pro-rata basis in the year of acquisition. However, depreciation on account of appreciation upon revaluation is adjusted by transfer from revaluation reserve.

4 Foreign Currency Transactions:

The purchase and sale of foreign currencies and paid documents are recorded at the exchange rate prevailing at the time of transaction. Foreign currencies and Encashed Travelers Cheques (ETCs) at the year end are treated as monetary asrets, in accordance with Accounting Standard—11 (Accounting for the effects of changes in foreign exchange rates), issued by The Institute Of Chartered Accountants Of India and are valued at the closing market rate, which is the general buying rate at the year end.

Current Liabilities in foreign currencies at close of year are converted at the closing settlement rate, on the date of the Balance Sheet Receivables/payables in foreign currencies are converted at the closing market rate at the year end. Exchange differences, if any, arising from rate fluctuation are dealt with in the Profit and Loss Account except in cases where these relate to the acquisition of fixed assets, in which case these are adjusted to the carrying cost of such assets.

5 Investments .-

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made if, in the opinion of the management, such decline is not temporary in nature.

6. Taxation:

(A). The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

(B). Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

(C). Deferred tax assets are not recognized on unabsorbed depreciation & carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reviewed at each balance sheet date to reassure the realization.

(D). Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

7. Dividend Income:

Dividend on investment is accounted for as and when the right to receive the same is established.

8. Proposed Dividend:

Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting. Employee Benefits:

a) Short term employee benefits like salaries & various incentives that fall due within twelve month from the end of the year in which the employee provide the services are recognized as expenses in year of incurring the expenditure as employee provides the services to the entity by reference to which the benefits are payable.

b) Long term employee benefits which are in the nature of defined benefit obligation, in respect of

(1) Gratuity liability as per actuarial valuation is recognized at the end of each reporting year in the statement of financial position based on the present value of the defined benefit obligation using Projected Unit Credit Method.

(2) The Provident Fund is funded through Provident Fund Trust and Companys contribution is charged to profit and loss Account each year.

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