Western Ministil Ltd. कंपली की लेखा नीति

Mar 31, 2025

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a] Basis of Preparation:

The financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS" as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016 and other relevant provisions of the Act. The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under the Companies (Accounting Standard) Rules 2006 and other relevant provisions of the Act, considered as the previous "GAAP". These financial statements are the Company''s first Ind AS financial statements are covered by Ind AS 101, First-time adoption of Indian Accounting Standards. However, there are no adjustments required in the transition. Therefore, no seperate reconciliation is provided

b] Use of Estimates:

The preparation of the financial statements requires that the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c] Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition

d] Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows specific to the liability.

The unwinding of the discount is recognised as finance cost.Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent Assets are not recognized till the realization of the income is virtually certain However, the same are disclosed in the financial statements where an inflow of economic benefit is probable.

e] Earning per share:

Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to the equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted to take into account:

The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and weighted average number of additional equity shares that would have been outstanding assuming the conversion

f] Income Tax

Income tax expense/income comprises current tax expense income and deferred tax expense income. It is recognized in statement of profit or loss except to the extent that it relates to items recognized directly in equity or in other comprehensive income. Current tax comprises the expected tax payable or recoverable on the taxable profit or loss for the year and any adjustment to the tax payable or recoverable in respect of previous years.

It is measured using tax rates enacted or substantively enacted by the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretations and establishes provisions where appropriate. Deferred Income tax is recognised in respect of temporary difference between the carrying amount of assets and liabilities for financial reporting purpose and the amount considered for tax purpose. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised such reductions are reversed when it becomes probable that sufficient taxable profits will be available. Deferred tax is measured at the tax rates that are expected to be applied temporary differences when they reverse, using tax rates enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities

g] Cash and cash equivalents

Cash & cash equivalents in the balance sheet includes cash at bank and on hand, deposits held at call with financial institutions, other short term highly liquid investments, with original maturities less than three months which are readily convertible into cash and which are subject to insignificant risks of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents cash and short term deposits as defined above is net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

h] Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue

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Mar 31, 2024

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a] Basis of Preparation:

The financial statements have been prepared in accordance with Indian
Accounting Standards ("Ind AS") as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with the
Companies (Indian Accounting Standards) Rules, 2015 as amended by the
Companies (Indian Accounting Standards) Rules, 2016 and other relevant
provisions of the Act. The financial statements up to year ended March 31,
2017 were prepared in accordance with the accounting standards notified
under the Companies (Accounting Standard) Rules 2006 and other relevant
provisions of the Act, considered as the previous "GAAP". These financial
statements are the Company''s first Ind AS financial statements are covered
by Ind AS 101, First-time adoption of Indian Accounting Standards. However,
there are no adjustments required in the transition. Therefore, no seperate
reconciliation is provided.

b] Use of Estimates:

The preparation of the financial statements requires that the Management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liabilities as at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. The recognition, measurement, classification or disclosure
of an item or information in the financial statements is made relying on these
estimates.

The estimates and judgements used in the preparation of the financial
statements are continuously evaluated by the Company and are based on
historical experience and various other assumptions and factors (including
expectations of future events) that the Company believes to be reasonable
under the existing circumstances. Actual results could differ from those
estimates. Any revision to accounting estimates is recognized prospectively in
current and future periods.

c] Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the Government.

Interest income from a financial asset is recognized when it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate applicable, which is the
rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset''s net carrying amount on initial recognition.

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Mar 31, 2014

1. a] Basis of Accounting:

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

b] Use of Estimates:

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c] Fixed Assets:

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Capital work in progress comprises cost of fixed assets that are not ready for its intended use. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalised.

d] Depreciation and amortisation:

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/deletions from fixed assets is provided on pro-rata basis from/up to the date of such additions/deletions as the case may be. Assets costing less than Rs. 5,000/- each are fully depreciated in the year of purchase.

e] Impairment of Fixed Assets:

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Statement of Profit and Loss in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

f] Leases:

Lease payments (i.e. lease rental charges) under operating leases are recognised as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.

g] Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Asets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised, but are disclosed in the Notes. Contingent assets are neither recognised nor disclosed in the accounts.

h] Earning per share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i] Miscellaneous Expenditure:

Preliminary expenses are amortised and charged-off to Statement of Profit and Loss in the year in which it is incurred.

2. CONTINGENT LIABILITIES:

a] Having been dis-satisfied with the orders passed by DRAT on 12-10-2006 in the Appeals relating to O.A. Nos.1808/2000 & 3202/2000, remanded for review by Bombay High Court vide order dated 21-07-2006, Writ Petitions have been filed in Bombay High Court for quashing the Orders of DRAT dated 31-12-2004 and 12-10-2006. In view of the matter being subjudice, liability if any, on this account cannot be determined or accounted for.

b] The Company has received a demand notice from BMC to effect payment of alleged arrears of property tax amounting to Rs. 28.37 lacs as at 31-03-2005 which is being contested as there has not been any change of user in its leasehold land at Mulund, Mumbai. Bills for the period 01-04-2005 onwards appears to have been with-held by BMC, pending disposal of Company''s appeal.

3. Provision for doubtful debts have been made in respect of an amount Rs. 118.15 lac due from M/s Virgo Steels and covered under suit no: 4433 of 1994 as well as an amount of Rs. 17.78 Lac due from M/s Bharat Steel Corporation covered under C.C. no: 313/P/1993 both being trade receivables in litigation.

An amount of Rs. 45.74 Lac has been written off as bad debt being the trade receivable due from M/s Sterling Steel Rolling Mills found not recoverable.

4. a] The Company owes an aggregate amount of Rs. 392.46 lacs to its associate companies towards short term borrowings (inclusive of accrued interest of Rs. 226.61 lacs), which liability, it is unable to discharge for obvious reasons of financial difficulties and lack of funds.

b] Provision has not been made towards interest payable to the associate companies on their short term borrowings due to the Company having not earned any revenue/income or carried out any business activities during the financial year ended 31-03-2014.

c] After the closure of the plant at Mulund on 01-12-1995 the remaining facilities have been impaired/discontinued. However, during the financial year depreciation have been provided for since the financial year 1996-97 till date. In view of this deferred taxation in terms of Accounting Standard, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India, has not been considered. In view of above, the Company does not envisage any possibilities of restructuring its activities in foreseeable future.

5. The Company does not have different segments and hence segment-wise reporting in terms of Accounting Standard (AS) 17 ''Segment Reporting'' issued by the Institute of Chartered Accountants of India is not applicable. Further, the Company has not carried on any production during the financial year.

6. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18.

A. Relationship: Associate Companies

(i) WRM Pvt. Ltd.

(ii) Eastcoast Steel Ltd.

B. Key Managerial Personnel:

(i) Mr. Prithviraj S. Parikh

(ii) Mr. P. K. R. K. Menon

Related Party Transactions:

Outstanding Loan Amount (including interest payable) to associate companies and director and other Parties as at 31.03.2014

7. Although, the Company has been making payment of lease rental charges to Lohitka Properties Pvt. Ltd., the lesser, in respect of Mulund property, these cheques have not been encashed for reasons known to the lessor only.

8. There has been no imports or expenditure in foreign currency either during the year or in the previous year and hence no relevant information is furnished.

9. Previous Year''s figures have been regrouped wherever necessary to make them comparable with those of current year figures.

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Mar 31, 2013

A] Basis of Accounting:

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordence with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

b] Use of Estimates:

The preparation of the financial statements in confirmity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c] Fixed Assets:

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Capital work in progress comprises cost of fixed assets that are not ready for its '' intended use. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalised.

d] Depreciation and amortisation:

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to / deletions from fixed assets is provided on pro-rata basis from / up to the date of such additions / deletions as the case may be. Assets costing less than ? 5,000/- each are fully depreciated in the year of purchase.''

e] Impairment of Fixed Assets:

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordence with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Statement of Profit and Loss in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate, of recoverable amount.

f] Leases:

Lease payments (i.e. lease rental charges) under operating leases are recognised as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.

g] Provisions, Contingent Liabilities''and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but problbly will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Asets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised, but are disclosed in the Notes. Contingent assets are neither recognised nor disclosed in the accounts.

h] Earning per share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i] Miscellaneous Expenditure:

Preliminary expenses are amortised and charged-off to Statement of Profit and Loss in the year in which it is incurred.

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Mar 31, 2012

A) Basis of Accounting:

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

b) Use of Estimates:

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c) Fixed Assets:

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Capital work in progress comprises cost of fixed assets that are not ready for its intended use. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalised.

d) Depreciation and amortisation:

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/deletions from fixed assets is provided on pro-rata basis from/up to the date of such additions / deletions as the case may be. Assets costing less than 5,000/- each are fully depreciated in the year of purchase.

e) Impairment of Fixed Assets:

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Statement of Profit and Loss in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

f) Leases:

Lease payments (i.e. lease rental charges) under operating leases are recognised as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.

g) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised, but are disclosed in the Notes. Contingent assets are neither recognised nor disclosed in the accounts.

h) Earning per share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i) Miscellaneous Expenditure:

Preliminary expenses are amortised and charged-off to Statement of Profit and Loss in the year in which it is incurred.

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Mar 31, 2011

A] Basis of Accounting:

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

b] Use of Estimates:

The preparation of the financial statements in confirmity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the Veported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c] Fixed Assets:

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Capital work in progress comprises cost of fixed assets that are not ready for its intended use. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalised.

d] Depreciation and amortisation:

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,000/- each are fully depreciated in the year of purchase.

e] Impairment of Fixed Assets:

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordence with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit 6t Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

f] Leases:

Lease payments (lease rental charges) under operating leases are recognised as an expense on a straight line basis in the Profit & Loss A/c over the lease term.

g] Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but problbly will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Asets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised , but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the accounts.

h] Earning per share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i] Miscellaneous Expenditure:

Preliminary expenses are amortised and charged-off to Profit & Loss A/c in the year in which it is incurred.

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Mar 31, 2010

A] Basis of Accounting:

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordence with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

b] Use of Estimates:

The preparation of the financial statements in confirmity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c] Fixed Assets:

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Capital work in progress comprises cost of fixed assets that are not ready for its intended use. Exchange gain or loss on adjustments arising from exchange rate variations attrib table to the fixed assets is capitalised.

d] Depreciation and amortisation:

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,0007- each are fully depreciated in the year of purchase.

e] Impairment of Fixed Assets:

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordence with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

f] Leases:

Lease payments (Lease rental charges) under operating leases are recognised as an expense on a straight line basis in the Profit & Loss A/c over the lease term.

g] Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but problbly will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Asets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised , but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the accounts.

h] Earning per share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i] Miscellaneous Expenditure:

Preliminary expenses are amortised and charged-off to Profit & Loss A/c in the year in which it is incurred.