Mar 31, 2015
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013, The financial statements are
prepared on accrual basis under the historical cost convention.
B. USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP
requires judgments, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
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
C. FIXED ASSETS
Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of
Tangible Assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets if any -
D. DEPRECIATION, AMORTISATION AND DEPLETION
Tangible Assets
Depreciation on Fixed Assets is provided to the extent of depreciable
amount on the Written Down Value (WDV) Method, Depreciation is provided
based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.
E. IMPAIRMENT
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Statement in the year in which an asset is identified as impaired
if any.
F. FOREIGN CURRENCY TRANSACTIONS
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction, if any
b. Monetary items denominated in foreign currencies at the year end are
restated at year end rates if any. In case of items which are covered by
forward exchange
contracts, the difference between the year end rate and rate on the date
of the contract is recognized as exchange difference and the premium
paid on forward contracts is recognized over the life of the contract if
any
c. Non-monetary foreign currency items are carried at cost if any
d. In respect of integral foreign operations, all transactions are
translated at rates prevailing on the date of transaction or that
approximates the actual rate at the date of transaction. Monetary
assets and liabilities are restated at the year end rates if any
e. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Statement, if any
G. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value,
computed category-wise if any and Non Current investments are stated at
cost. Provision for diminution in the value of Non Current investments
is made only if such a decline is other than temporary.
H. INVENTORIES
Items of inventories are measured at lower of cost and net realizable
value
I. REVENUE RECOGNITION
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods, services, service tax, excise duty
and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contract etc if any
Dividend income is recognized when the right to receive payment is
established.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
J. BORROWING COSTS
Borrowing costs include exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to
the interest cost. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Profit and
Loss Statement in the period in which they are incurred.
K. INCOME TAXES
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates.
Deferred income tax reflect the current period timing differences
between taxable income and accounting income for the period and
reversal of timing differences of earlier years/period. Deferred tax
assets are recognized only to the extent that there is a reasonable
certainty that sufficient future income will be available except that
deferred tax assets, in case there are unabsorbed depreciation or
losses, are recognized if there is virtual certainty that sufficient
future taxable income will be available to realize the same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
L. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognized in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting data These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed unless the possibility of outflow
of resources is remote, Contingent assets are neither recognized nor
disclosed in the financial statements.
Mar 31, 2014
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