Siris Ltd. कंपली की लेखा नीति

Mar 31, 2010

I) GENERAL:

Financial Statements are prepared under the historical cost convention and in accordance with the normally accepted accounting practices and under going concern assumption.

ii) FIXEDASSETS:

Fixed Assets are stated at Cost less Modvat credit and accumulated depreciation. Cost of acquisition of fixed assets inclusive of freight, duties, taxes, incidental expenses relating to the cost of installation/erection as applicable.

Hi) DEPRECIATION:

Depreciation is written-off under the written down value method in respect of assets which were in existence as on 01.04.92 and on SLM in respect of all the subsequent additions in accordance with Schedule XIV to the Companies Act, 1956.

iv) INVENTORIES:

Inventories are valued at lower of cost or net realizable value. Raw materials, stores and spares cost is determined using FIFO and Weighted average method respectively. Cost of work in progress and finished goods include appropriate portion of overheads etc., and Excise Duty wherever applicable. By products, scrap is valued at net realizable value. Machinery spares which can be used only in connection with an item of fixed asset and whose usage is expected to be irregular are amortized over the life of the principal asset.

v) EMPLOYEE BENEFITS

a) Short Term Employee Benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

b) Long Term Employee Benefits i.e such benefits which do not fall due wholly within twelve months after the end of the period in which the employees render the related service, are recognized as follows

i) Expense is arrived at as per actuarial valuation and is recognized and charged to the Profit and loss account in the year in which employee has rendered services in lieu of such leave.

ii) Liability as at the date of each Balance Sheet is arrived at and recognized therein as per actuarial valuation.

c) Post-Employment Benefits:

(i) Defined Contribution plans: The companys employees are covered under Employees Provident fund scheme, which is in the nature of a Defined Contribution Plan. The contributions paid/payable under the scheme are recognized during the period in which the employee renders the related service.

(ii) Defined Benefit plans :

The companys liability to gratuity on retirement of its eligible employees is accounted for as a Defined Benefit Plan. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method. The incremental expense thereon for each year is arrived at as per actuarial valuation and is recognized and charged ¦ to the Profit and loss account in the year in which the employee has rendered service. The gross obligation is also recognized in each Balance Sheet based on actuarial valuation.

d) Actuarial Gains/losses are charged to the profit and loss account immediately in each year.

vi) SALES AND OTHER EARNINGS:

A. Sales are inclusive of Excise Duty and packing charges and net of rebates and Sales Tax, Export sales are initially accounted at the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

B. Earnings in Foreign Currency are accounted for at the rate of exchange on the date of /t realization.

vii) EXCISE DUTY:

Excise Duty liability on f .ned goods is accounted for in the period in which the goods are cleared from the liclo-i.Tid the provision is made on the Closing stock of such goods lying at Factory.

viii) EXPENDITURE OF RESEARCH AND DEVELOPMENT:

Research and Development expenditure of Capital nature is included in the fixed assets and other expenditure is charged to revenue in the year in which such expenditure is incurred.

ix) INVESTMENTS:

Investments are valued at cost and income thereon is accounted for when accrued. Provision towards decline in the value of Long Term Investments is made only when such decline is other than temporary.

x) FOREIGN EXCHANGE TRANSACTIONS:

a) Export Sales are initially accounted at the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

b) Import of materials/ capital equipment are accounted at the rates at which the actual payments are effected.

c) Assets and Liabilities arising out of foreign exchange transactions, as mentioned above, are translated at the rates of exchange ruling on the date of Balance Sheet and the exchange difference therefrom is adjusted to revenue

xi) TAXES ON INCOME:

a) Current Tax is determined in accordance with the Provisions of the Income Tax Act, 1961.

b) Deferred tax is recognized on timing differences between taxable income as per the Income Tax Act and the Accounting income, using the tax rates and tax laws, which have been enacted or substantively enacted.

c) Deferred tax assets on account of carried forward losses as per tax laws are recognized to the extent of virtual certainty that there will be sufficient future taxable income. Other deferred tax assets are recognized when there is reasonable certainty as to their realization.

xii) IMPAIRMENT OF ASSETS:

At the date of each Balance Sheet, the company evaluates internally, indications of the impairment, if any, to the carrying amount of its Fixed and Other Assets. If any indication does exists, the recoverable amount is estimated at the higher of the realizable value and value in use, as considered appropriate. If the estimated realizable value is less than the carrying amount an impairment loss is recognized. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.

xiii) CONTINGENT LIABILITIES:

Contingent liabilities are not recognized in the accounts, but are disclosed after a careful evaluation of the concerned facts and legal issues involved.