ഹോം  »  Company  »  ABC Bearings Ltd.  »  Quotes  »  Accounting Policy
കമ്പനിയുടെ പേരിലെ ആദ്യത്തെ കുറച്ച് അക്ഷരങ്ങള്‍ എന്റര്‍ ചെയ്യൂ, അതിന് ശേഷം 'ഗോ' എന്നതില്‍ ക്ലിക്ക് ചെയ്യൂ

Accounting Policies of ABC Bearings Ltd. Company

Mar 31, 2016

1. Basis of accounting and preparation of financial statements:

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets:

a) Fixed Assets are stated at their historical cost.

b) Addition to fixed assets comprises the purchase price and directly attributable costs.

c) Tools each costing Rs.25,000/- or more are treated as fixed assets.

d) Depreciation is provided on straight-line basis in the manner and according to useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of Plant and Machineries, where useful life is considered at 20 years instead of 15 years prescribed in Schedule II based on technical evaluation by the management.

e) Cost of Leasehold Land is amortized over the period of lease.

f) Intangible assets are amortized as under:

Software - equally over a period of three years.

Knowhow - equally over a period of ten years.

4. Investments:

Investments are stated at cost, less diminution in value other than temporary, and are meant to be held for long-term period.

5. Inventory Valuation:

a) Stock of Stores and Spares : At the lower of cost on weighted Average basis and the net realizable value.

b) Raw Materials and Tools : At the lower of cost on weighted average basis and the net realizable value.

c) Work in Progress 1 : At the lower of cost and the net realizable value.

d) Finished Goods

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

6. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the Balance Sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realization/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognized in the Statement of Profit and Loss.

The Company has opted for accounting the exchange differences arising on long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to Accounting Standard 11 notified by Government of India on 31st March, 2009. Accordingly, the effect of exchange on foreign currency loans of the Company is accounted by addition or deduction to the cost of assets so far as it relates to depreciable capital assets.

The Company uses foreign currency forward contracts to hedge its risk associated with fluctuations in foreign currency borrowings. Foreign currency forwards contracts are treated as foreign currency transactions and accounted as per Accounting Standard 11.

7. Retirement Benefits:

Retirement benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the Company/statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Accumulated compensated absences which are expected to be availed or encashed beyond 12 months from the end of the year, are treated as other long term employee benefits for measurement purpose. The Company’s liability is determined on the basis of an actuarial valuation as at Balance Sheet date. Actuarial gains/ losses are recognized in the Statement of Profit and Loss in the year in which they arise.

8. Sales:

Sales are recognized when the substantial risks and rewards of ownership are transferred which is on the dispatch of goods. Sales comprise sale of goods, including excise duty and other incidental recoveries.

9. Borrowing Cost:

Interest and other borrowing costs attributable to qualifying assets are capitalized up to the date the asset is ready for its intended use. Other interest and borrowing costs are charged to revenue.

10. Taxes on Income:

Current Tax

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax

Deferred Tax is recognized, 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. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized. Deferred tax assets arising on account of unabsorbed depreciation is recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax asset can be realized.

Minimum Alternative Tax (MAT)

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss.

11. Provisions and Contingencies:

A provision is recognized when there is a present obligation as a result of past event, which probably requires a cash outflow and a reliable estimate can be made of the amount of obligation. Contingent liabilities are not recognized but disclosed in the financial statements. Contingent assets are neither recognized nor disclosed.


Mar 31, 2015

1. Basis of accounting and preparation of financial statements:

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Fixed Assets:

a) Fixed Assets are stated at their historical cost.

b) Addition to fixed assets comprises the purchase price and directly attributable costs.

c) Tools each costing Rs.25,000/- or more are treated as fixed assets.

d) Depreciation is provided on straight-line basis in the manner and according to useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of Plant and Machineries, where useful life is considered at 20 years instead of 15 years prescribed in Schedule II based on technical evaluation by the management.

e) Cost of Leasehold Land is amortised over the period of lease.

f) Intangible assets are amortised as under:

Software - equally over a period of three years.

Knowhow - equally over a period of ten years.

3. Investments:

Investments are stated at cost, less diminution in value other than temporary, and are meant to be held for long-term period.

4. Inventory Valuation:

a) Stock of Stores and Spares : At the lower of cost on weighted Average basis and the net realisable value.

b) Raw Materials and Tools : At the lower of cost on weighted average basis and the net realisable value.

c) Work in Progress : At the lower of cost and the net realisable value.

d) Finished Goods

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

5. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the Balance Sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realisation/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognised in the Statement of Profit and Loss.

The Company has opted for accounting the exchange differences arising on long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 notified by Government of India on 31st March, 2009. Accordingly, the effect of exchange on foreign currency loans of the Company is accounted by addition or deduction to the cost of assets so far as it relates to depreciable capital assets.

The Company uses foreign currency forward contracts to hedge its risk associated with fluctuations in foreign currency borrowings. Foreign currency forwards contracts are treated as foreign currency transactions and accounted as per Accounting Standard 11.

6. Retirement Benefits:

Retirement benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the Company/statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Accumulated compensated absences which are expected to be availed or encashed beyond 12 months from the end of the year, are treated as other long term employee benefits for measurement purpose. The Company's liability is determined on the basis of an actuarial valuation as at Balance Sheet date. Actuarial gains/ losses are recognized in the Statement of Profit and Loss in the year in which they arise.

7. Sales:

Sales are recognised when the substantial risks and rewards of ownership are transferred which is on the despatch of goods. Sales comprise sale of goods, including excise duty and other incidental recoveries.

8. Borrowing Cost:

Interest and other borrowing costs attributable to qualifying assets are capitalised upto the date the asset is ready for its intended use. Other interest and borrowing costs are charged to revenue.

9. Taxes on Income:

Current Tax

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax

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. Deferred tax assets, subject to consideration of prudence, are recognised and carried forward only to the extent that they can be realized.

Minimum Alternative Tax (MAT)

Minimum Alternative Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss.

10. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event, which probably requires a cash outflow and a reliable estimate can be made of the amount of obligation. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed.

The Company has only one class of share, namely Equity Shares having face value of Rs. 10/- each. The holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b) Details of shareholders holding more than 5% shares are set out below:

1) Term Loans are Secured by first and exclusive hypothecation charge over plant and machiney purchased under the bank finance, pari passu first charge over other unen- cumbered existing plant and machinery of the Company and Registered Mortgage over land and building at Plot 109-A, Bharuch.

2) The loans are repayable as under;

Term Loan 1 is repayable in 20 equal quarterly installments commencing from January-2013 to October-2017. Term Loan 2 is repayable in 20 equal quarterly installments commencing from January-2015 to October-2019.

## Secured by first and exclusive charge on Land and building and entire movable fixed assets including plant and machinery at Dehradun. The loan is repayable in 20 equal quarterly installments commencing from January-2015.

Working capital loan facilities are secured by first pari passu hypothecation charge on stock in trade and book debts and second pari passu charge on Plant & Machinery of the Company and further secured by Registered Mortgage over factory land and building at Plot 109-A, Bharuch.


Mar 31, 2014

1. Basis of accounting and preparation of financial statements:

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standard notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act,1956 read with General Circular 15/2014 dated 13th September 2014, issued by the Ministry of Corporate Affairs, in respect of Section 133 of the Companies Act, 2014. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Fixed Assets:

a) Fixed Assets are stated at their historical cost.

b) Addition to fixed assets comprises the purchase price and directly attributable costs.

c) Tools each costing Rs. 25,000/- or more are treated as fixed assets.

d) Depreciation is provided on straight-line basis in the manner and at the rates prescribed in Schedule XIV to the Companies Act, 1956.

e) Cost of Lease-hold land is amortised over the period of lease.

f) Intangible assets are amortised as under: Software - equally over a period of three years. Knowhow - equally over a period of ten years.

3. Investments:

Long term Investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognise a decline other than temporary. Current Investments are valued at the lower of cost or market value.

4. Inventory Valuation:

a) Stock of Stores and Spares : At lower of cost on weighted Average basis or net realisable value.

b) Raw Materials and Tools : At lower of cost on weighted average basis or net realisable value

c) Work in Progress }

d) Finished Goods } : At lower of cost or net realisable value.

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

5. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the Balance Sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realisation/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognised in the Statement of Profit and Loss.

The Company has opted for accounting the exchange differences arising on long term foreign currency monetary items in line with the Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 notified by the Government of India on 31st March, 2009. Accordingly, the effect of exchange on foreign currency loans of the Company is accounted by addition or deduction to the cost of assets so far as it relates to depreciable capital assets.

The Company uses foreign currency forward contracts to hedge its risk associated with fluctuations in foreign currency borrowings. Foreign currency forwards contracts are treated as foreign currency transactions and accounted as per Accounting Standard 11.

6. Retirement Benefits:

Retirement Benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the Company / statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Liability for leave encashment on retirement is provided based on actuarial valuation.

7. Sales:

Sales are recognised when the substantial risks and rewards of ownership are transferred which is on the despatch of goods. Sales comprise sale of goods, including excise duty and other incidental recoveries.

8. Borrowing Cost:

Interest and other borrowing costs attributable to qualifying assets are capitalised upto the date the asset is ready for its intended use. Other interest and borrowing costs are charged to revenue.

9. Taxes on Income:

Current Tax

Provision for Income Tax is determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax

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.

Minimum Alternative Tax (MAT)

Minimum Alternative Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India (''ICAI''), the said asset is created by way of a credit to the Statement of Profit and Loss.

10. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event, which probably requires a cash outflow and a reliable estimate can be made of the amount of obligation. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed.


Mar 31, 2013

1. Basis of accounting and preparation of fi nancial statements:

The fi nancial statement of the company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standard notifi ed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act,1956. The accounting policies adopted in the preparation of the fi nancial statements are consistent with those followed in the previous year.

2. Fixed Assets:

a) Fixed Assets are stated at their historical cost.

b) Addition to fi xed assets comprises the purchase price and directly attributable costs.

c) Tools each costing Rs. 25,000/- or more are treated as fi xed assets.

d) Depreciation is provided on straight-line basis in the manner and at the rates prescribed in Schedule XIV to the Companies Act, 1956.

e) Cost of Lease-hold land is amortised over the period of lease.

f) Intangible assets are amortised as under: Software - equally over a period of three years. Knowhow - equally over a period of ten years.

3. Investments

Investments are stated at cost, less diminution, if any, and are meant to be held for long-term period.

4. Inventory Valuation:

a) Stock of Stores and Spares : At lower of cost on weighted Average basis or net realisable value.

b) Raw Materials and Tools : At lower of cost on weighted average basis or net realisable value

c) Work in Progress "j : At lower of cost or net realisable value.

d) Finished Goods J

e) Excise duty payable on fi nished goods stocks at the end of the year is accounted for and considered for valuation.

5. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realisation/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognised in the Statement of Profi t and Loss.

6. Retirement Benefi ts:

Retirement benefi ts to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the company / statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Liability for leave encashment on retirement is provided based on actuarial valuation.

7. Sales:

Sales are recognised when the substantial risks and rewards of ownership are transferred which is on the despatch of goods. Sales comprise sale of goods including excise duty and other incidental recoveries.

8. Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are capitalised upto the date the asset is ready for its intended use. Other interest and borrowing costs are charged to revenue.

9. Taxes on Income

Current Tax

Provision for Income Tax is determined in accordance with the provisions of Income Tax Act, 1961

Deferred Tax

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.

Minimum Alternative Tax (MAT)

Minimum Alternative Tax (MAT) credit is recognised as an asset, only when, and to the extent, there is convincing evidence that the Company will pay normal income-tax during the specifi ed period. The year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India (''ICAI''), the said asset is created by way of a credit to the statement of profi t and loss.

10. Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of past event, which probably requires a cash outfl ow and a reliable estimate can be made of the amount of obligation. Contingent liabilities are not recognised but disclosed in the fi nancial statements. Contingent assets are neither recognised nor disclosed.


Mar 31, 2012

1. Basic of accounting and preparation of financial statements:

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standard notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provision of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Fixed Assets:

a) Addition to fixed assets comprises the purchase price and directly attributable costs.

b) Tools each costing Rs.25,000/- or more are treated as fixed assets.

c) Depreciation is provided in the manner and at the rates prescribed in Schedule XIV to the Companies Act, 1956, as under:

i) On straight line basis for assets acquired prior to 1st April, 1987 and after 31st March, 1991.

ii) On written down value basis for assets acquired during 1st April, 1987 to 31st March, 1991.

d) Cost of Lease-hold land is amortized over the period of lease.

e) Intangible assets are amortized as under:

Software - equally over a period of three years.

Knowhow - equally over a period of ten years.

3. Investments:

Investments are stated at cost, less provision for diminution other than temporary, if any, and are meant to be held for long-term period.

4. Inventory Valuation:

a) Stock of Stores and Spares : At lower of cost on weighted Average basis or net realizable value.

b) Raw Materials and Tools : At lower of cost on weighted average basis or net realizable value

c) Work in Progress : At lower of cost or net realizable value.

d) Finished Goods

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

5. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the Balance Sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realization/settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognized in the Statement of Profit and Loss except for gains/losses arising on restatement/settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets which are adjusted to the cost of the respective assets. None of the exchange differences arising from foreign currency borrowings are regarded as an adjustment to interest costs.

6. Retirement Benefits:

Retirement benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the Company/statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Liability for leave encashment on retirement is provided based on actuarial valuation.

7. Sales:

Sales are recognized on dispatch to customers. Sales comprise sale of goods including excise duty and other incidental recoveries.

8. Taxes on Income:

Current Tax

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax Provision

Deferred Tax is recognized, 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.

The Company has only one class of share, namely Equity Shares having face value of ' 10/- each. The holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

# Secured by first and exclusive hypothecation charge over plant & machinery purchased under the finance. Further, the first charge on other plant & machinery and second charge on current assets of the company on pari passu basis. The loan is repayable in 9 equal quarterly installments of ' 1.66 crore each from Balance Sheet date up to June 2014.

## Secured by first and exclusive hypothecation charge over plant & machinery purchased under the finance and further the pari passu charge over existing plant & machinery. The loan is repayable in 20 equal quarterly installments of ' 2.50 crore each from January 2013 to October 2017. Amount of loan sanctioned ' 50 crores is yet to be fully availed.

### Secured by hypothecation of vehicle purchased under the finance. The loan is repayable in 24 monthly installments from Balance Sheet date upto March 2014.


Mar 31, 2011

1. FIXED ASSETS :

a) Fixed Assets are stated at their historical cost.

b) Addition to fixed assets comprise the purchase price and directly attributable costs.

c) Tools each costing Rs. 25,000/- or more are treated as fixed assets.

d) Depreciation is provided in the manner and at the rates prescribed in Schedule XIV to the Companies Act, 1956, as under :

i) On straight line basis for assets acquired prior to 1st April, 1987 and after 31st March, 1991.

ii) On written down value basis for assets acquired during 1st April, 1987 to 31st March, 1991.

e) Cost of Lease-hold land is amortised over the period of lease.

f) Intangible assets are amortised as under: Software – equally over a period of three years. Knowhow – equally over a period of ten years.

2. INVESTMENTS

Investments are stated at cost, less diminution, if any, and are meant to be held for long-term period.

3. INVENTORY VALUATION :

a) Stock of Stores and Spares : At lower of cost on weighted Average basis or net realisable value.

b) Raw Materials and Tools : At lower of cost on weighted average basis or net realisable value

c) Work in Progress } : At lower of cost or net d) Finished Goods

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

4. FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realisation/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognised in the Profit and Loss Account.

5. RETIREMENT BENEFITS:

Retirement benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the company / statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Liability for leave encashable on retirement is provided based on acturial valuation.

6. SALES

Sales are recognised on despatch to customers. Sales comprise sale of goods including excise duty and other incidental recoveries.

7. TAXES ON INCOME Current Tax

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.


Mar 31, 2010

1. FIXED ASSETS:

a) Fixed Assets are stated at their historical cost.

b) Addition to fixed assets comprise the purchase price and directly attributable costs.

c) Tools each costing Rs.25,000/- or more are treated as fixed assets.

d) Depreciation is provided in the manner and at the rates prescribed in Schedule XIV to the Companies Act, 1956, as under:

i) On straight line basis for assets acquired prior to 1st April, 1987 and after 31st March, 1991.

ii) On written down value basis for assets acquired during 1st April, 1987 to 31st March, 1991.

e) Cost of Lease-hold land is amortised over the period of lease.

f) Intangible asset is amortised equally over a period of three years.

2. INVESTMENTS

Investments are stated at cost, less diminution, if any, and are meant to be held for long-term period.

3. INVENTORY VALUATION :

a) Stock of Stores and Spares At lower of cost on weighted Average basis or net realisable value.

b) Raw Materials and Tools

At lower of cost on weighted average basis or net realisable value

c) Work in Progress

d) Finished Goods At lower of cost or net realisable value.

e) Excise duty payable on finished goods stocks at the end of the year is accounted for and considered for valuation.

4. FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date.

Gains/losses arising on account of realisation/settlement of foreign exchange transactions and on translation of foreign currency assets (other than relating to Fixed Assets) and liabilities are recognised in the Profit and Loss Account.

5. RETIREMENT BENEFITS:

Retirement benefits to employees comprise of payment of gratuity, superannuation and provident fund under the approved schemes of the company / statutory regulation. Gratuity liability is provided on the basis of actuarial valuation and funded with an approved Trust. Liability for leave encashable on retirement is provided based on acturial valuation.

6. SALES

Sales are recognised on despatch to customers. Sales comprise sale of goods including excise duty and other incidental recoveries.

7. TAXES ON INCOME Current Tax

Provision for Income Tax is determined in accordance with the provisions of IncomeTax 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.

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