KKV Agro Powers Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

B. SIGNIFICANT ACCOUNTING POLICIES:

(i) a) Basis of Preparation:

The Financial Statements have been prepared to comply in all material respects with
the accounting standards specified under Section 133 of the Companies Act read with
Rule 7 of the Companies (Accounting Standards) Rules, 2014 and the relevant
provisions of the companies Act, 2013. The Financial Statements have been repared
under the historical cost convention on an accrual basis. This accounting policy has
been consistently applied by the company with those used in the previous year.

b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted
Accounting Principles requires management to make estimates and assumptions
that affect the reported amount of assets, liabilities, disclosures relating to contingent
liabilities and assets as at the balance sheet date and the reported amounts of income
and expenses during the year. Difference between the actual amounts and the
estimates are recognised prospectively in the year in which the events are
materialised.

(ii) Property, Plant & Equipment, Depreciation/ Amortisation and Impairment:

a) Property, plant and equipment (PPE) being Fixed assets are tangible items held
for use or for administrative purposes and are measured at cost less accumulated
depreciation and any accumulated impairment. Cost comprises of the purchase price
including import duties and non-refundable purchase taxes after deducting trade
discounts and rebates and any costs attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by
the Management. Finance costs relating to acquisition of assets which take
substantial period of time to get ready for intended use are also included to the extent
they relate to the period up to such assets are ready for their intended use.

b) Items such as spare parts, stand-by equipment and servicing equipment are
recognised if they meet the definition of property, plant and equipment.

c) The carrying amount of an item of PPE is derecognised on disposal or when no
future economic benefits are expected from its use or disposal. The gain/ loss arising
from derecognition of an item of PPE is included in the statement of Profit & Loss.
The gain or loss arising from the derecognition of an item of PPE would be the
difference between the net disposal proceeds, if any, and the carrying amount of the
item.

d) Depreciation on Property, plant and equipment are provided under straight line
method as per the useful lives and manner prescribed under Schedule II to the
Companies Act, 2013. Where the cost of a part of the PPE is significant to the total
cost of the PPE and if that part of the PPE has a different useful life than the main
PPE, the useful life of that part is determined separately for depreciation. The
depreciation method applied to an asset is reviewed at each financial year-end and
if there has been a significant change in the expected pattern of consumption of
future economic benefits embodied in the asset, depreciation is charged to reflect the
changed pattern.

(ii) Property, plant and equipment (Continued.,)

e) As at each Balance sheet date, the carrying amount of assets is tested for impairment
so as to determine

i) The provision for impairment loss, if any, required or

ii) The reversal, if any, required of impairment loss recognized in previous periods.
Impairment loss is recognised when the carrying amount of an asset exceeds its
recoverable amount.

f) Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its
intended use.

The residual values, useful lives and method of amortization of Intangible Assets are
reviewed at each financial year end and adjusted prospectively, if appropriate
An intangible asset is derecognized on disposal, or when no future economic benefits
are expected from use or disposal. Gains or losses arising from derecognition of any
intangible asset are measured as the difference between net disposal proceeds and the
carrying amount of the asset and are recognized in the Statement of Profit and Loss
when the asset is derecognized.

iii) Investments:

a) Long-Term Investments are stated at cost.

b) Current Investments are carried at lower of cost and fair value as on the Balance
Sheet date.

c) Provision for diminution in value of long-term investments is made, if the
diminution is other than temporary.

iv) Inventories:

a) Inventories are valued at lower of cost on FIFO basis and estimated net realizable
value

b) Stores and spares which do not meet definition of PPE are accounted as inventories
at Cost

v) Foreign Currency Transaction:

a) Foreign Currency Transactions are recorded at exchange rates prevailing on the
date of such transaction.

b) Exchange differences arising on settlement on transactions of monetary items are
recognised as income/ expense in the Statement of Profit & Loss in the period in which
it arises.

c) Foreign Currency assets and liabilities at the yearend are realigned at the exchange
rate prevailing at the year end and the difference on realignment is recognized in the
Statement of profit & Loss.

d) Premium / Discount in respect of Forward contract are amortized as expense /
income over the period of contract. Exchange difference arising on forward contracts
between the exchange rate on the date of the transaction and the exchange rate
prevailing at the yearend is recognized in the Statement of Profit & Loss.

vi) Revenue Recognition:

a) Revenue is generally recognized, and expenditure is accounted for on their accrual
except those with significant uncertainties.

b) Revenue from Sale of goods is recognized when the risk and rewards of ownership
are passed on to the customers.

c) Profit / Loss on hedging transactions with Multi Commodity Exchanges are
accounted on closure of every transaction. The Open transaction as at the Balance
sheet date are Marked to Market and the resultant Profit / Loss is accounted.

d) Revenue by way of Sales under the various "Gold Saving Schemes" are accounted
as and when the subscribers complete their purchase transactions. The amounts
received from the subscribers under the monthly schemes are shown as liability
against the respective subscribers till the completion of the transactions.

e) Insurance claims are accounted, as and when settled or received.

f) Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable.

vii) Taxes on Income:

a) Current Tax on income is determined on the basis of taxable income and tax credits
computed in accordance with the provisions of the Income tax act 1961 and based on
the expected outcome of assessments/appeals.

b) Deferred tax assets are recognized and carried forward to the extent that there is a
virtual certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized. Deferred tax assets on business loss and
unabsorbed depreciation are recognized and carried forward to the extent that there
is virtual certainty that sufficient taxable income will be available against which such
deferred tax asset can be realized.

c) 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
guidance Note issued by the Institute of Chartered Accountants of India, the said asset
is created by way of a credit to the statement of profit and loss and shown as MAT
Credit Entitlement. The Company reviews the same at each balance sheet date and
writes down the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal Income Tax
during the specified period.

viii) Employee Benefits:

a) Short-term employee benefits are recognized as an expense at the undiscounted
amount in the Statement of Profit and Loss of the year in which the related service is
rendered.

b) Payments to defined contribution schemes are charged as expense as and when
incurred.

c) Post-employment and other long term, benefits, which are defined benefit plans,
are recognized as an expense in the Statement of Profit and Loss for the year in which
the employee has rendered service. The expense is recognized based on the present
value of the obligation determined in accordance with Accounting Standard 15 on
"Employee Benefits". Actuarial gains & losses are charged to the Statement of Profit
and Loss.

d) Termination benefits are recognized as an expense, as and when incurred.

ix) Borrowing Cost:

a) Interest and other related costs, including amortized costs of borrowings related to
the project or acquisition of qualifying assets are capitalized as part of the respective
assets. All the other borrowing costs are charged to revenue.

b) A qualifying asset is an asset that necessarily requires a substantial period of time
to get ready for its intended use or sale.

x) Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the
period attributable to equity Shareholders by the weighted average number of equity
shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.

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Mar 31, 2024

Note No.1

A About the Company:

KKV Agro Powers Limited ("The Company") is a listed company on the SME platform of the National Stock Exchange of India Ltd (NSE Emerge) from the financial year 2016-17 and was incorporated under the provisions of the Companies Act, 1956. The Registered office of the company is located at Coimbatore.

Nature of Operations:

KKV Agro Powers Limited is an Independent power producer engaged in the generation, transmission, distribution of power. It has an installed capacity of 10.6 MW that includes 7.6 MW wind power and 3 MW Solar power. The company is also pursuing in Trading of Precious Metals.

B SIGNIFICANT ACCOUNTING POLICIES:

i) a) Basis of Preparation:

The Financial Statements have been prepared to comply in all material respects with the accounting standards specified under Section 133 of the Companies Act read with Rule 7 of the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the companies Act, 2013. The Financial Statements have been prepared under the historical cost convention on an accrual basis. This accounting policy has been consistently applied by the company with those used in the previous year.

b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts ofincome anc expenses during the year. Difference between the actual amounts and the estimates are recognised prospectively in the year in which the events are materialised.

ii) Property, Plant & Equipment, Depreciation/Amortisation and Impairment:

a) Property, plant and equipment (PPE) being Fixed assets are tangible items held for use or for administrative purposes and are measured at cost less accumulated depreciation and any accumulated impairment. Cost comprises of the purchase price including import duties and non-refundable purchase taxes after deducting trade discounts and rebates and any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Management. Finance costs relating to acquisition of assets which take substantial period of time to get ready for intended use are also included to the extent they relate to the period up to such assets are readyfor their intended use.

b) Items such as spare parts, stand-by equipment and servicing equipment are recognised if they meet the definition of property, plant and equipment.

The carrying amount of an item of PPE is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain/ loss arising from derecognition of an item of PPE is included in the statement of Profit & Loss. The gain or loss arising from the derecognition of an item of PPE would be the difference between the net disposal proceeds, if any, and the carrying amount of the item.

c) Depreciation on Property, plant and equipment are provided under straight line method as per the useful lives and manner prescribed under Schedule II to the Companies Act, 2013. Where the cost of a part of the PPE is significant to the total cost of the PPE and if that part of the PPE has a different useful life than the main PPE, the useful life of that part is determined separately for depreciation. The depreciation method applied to an asset is reviewed at each financial year-end and if there has been a significant change in the expected pattern of consumption of future economic benefits embodied in the asset, depreciation is charged to reflect the changed pattern.

d)	The Useful Life prescribed in Schedule II to the Companies Act, 2013,
	S.No	Class of Assets	Useful life
	1	Building represented by Fencing Work	5 Years
	2	Plant and Machinery
		- Wind Power generation plant	22 years
		- Other than continuous process plant	15 years
	3	Furniture & Fittings	10 years
	4	Motor Vehicles	8 years
	5	Office Equipments	5 years
	6	Computers	3 years
	7	Electrical fittings	10 years
	8	Intangible Assets	5 years

e) As at each Balance sheet date, the carrying amount of assets is tested for impairment so as to determine

i) The provision for impairment loss, if any, required or

ii) The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

iii) Investments:

a) Long-Term Investments are stated at cost.

b) Current Investments are carried at lower of cost and fair value as on the Balance Sheet date.

c) Provision for diminution in value of long-term investments is made, if the diminution is other than temporary.

iv) Inventories:

a) Inventories are valued at lower of cost on FIFO basis and estimated net realizable value

b) Stores and spares which do not meet definition of PPE are accounted as inventories at Cost

v) Foreign Currency Transaction:

a)

Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Exchange differences arising on settlement on transactions of monetary items are recognised as income / expense in the Statement of Profit & Loss in the period in which it arises.

c) Foreign Currency assets and liabilities at the yearend are realigned at the exchange rate prevailing at the year end and the difference on realignment is recognized in the Statement of profit & Loss.

d) Premium / Discount in respect of Forward contract are amortized as expense / income over the period of contract. Exchange difference arising on forward contracts between the exchange rate on the date of the transaction and the exchange rate prevailing at the yearend is recognized in the Statement of Profit & Loss.

vi) Revenue Recognition:

a) Revenue is generally recognized, and expenditure is accounted for on their accrual except those with significant uncertainties.

b) Revenue from Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers.

c) Profit / Loss on hedging transactions with Multi Commodity Exchanges are accounted on closure of every transaction. The Open transaction as at the Balance sheet date are Marked to Market and the resultant Profit / Loss is accounted.

d) Revenue by way of Sales under the various "Gold Saving Schemes" are accounted as and when the subscribers complete their purchase transactions. The amounts received from the subscribers under the monthly schemes are shown as liability against the respective subscribers till the completion of the transactions.

e) Insurance claims are accounted, as and when settled or received.

f) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

vii) Taxes on Income:

a) Current Tax on income is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income tax act 1961 and based on the expected outcome of assessments/appeals.

b) Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets on business loss and unabsorbed depreciation are recognized and carried forward to the extent that there is virtual certainty that sufficient taxable income will be available against which such deferred tax asset can be realized.

c) 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 guidance Note issued by the Institute of Chartered Accountants of India, the said asset is createc by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

viii) Employee Benefits:

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Payments to defined contribution schemes are charged as expense as and when incurred.

c) Post-employment and other long term, benefits, which are defined benefit plans, are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered service. The expense is recognized based on the present value of the obligation determined in accordance with Accounting Standard 15 on "Employee Benefits". Actuarial gains & losses are charged to the Statement of Profit and Loss.

d) Termination benefits are recognized as an expense, as and when incurred.

ix) Borrowing Cost:

a) Interest and other related costs, including amortized costs of borrowings related to the project or acquisition of qualifying assets are capitalized as part of the respective assets. All the other borrowing costs are charged to revenue.

b) A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

x) Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity Shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xi) Provisions and Contingencies:

a)

^a) A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined.

b) A disclosure for a 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.

xii) Leases :

a) Where the company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

b) Where the company is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss.

xiii) Cash And Cash Equivalents :

Cash flow is reported using indirect method, whereby net profit before tax is adjusted for the effects of transaction of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow comprises regular revenue generating, investing and financing activities of the company. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

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Mar 31, 2023

B SIGNIFICANT ACCOUNTING POLICIES:

i) a) Basis of Preparation:

The Financial Statements have been prepared to comply in all material respects with the accounting standards specified under Section 133 of the Companies Act read with Rule 7 of the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the companies Act, 2013. The Financial Statements have been prepared under the historical cost convention on an accrual basis. This accounting policy has been consistently applied by the company with those used in the previous year.

b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts of income and expenses during the year. Difference between the actual amounts and the estimates are recognised prospectively in the year in which the events are materialised.

ii) Property, Plant & Equipment, Depreciation/Amortisation and Impairment:

a) Property, plant and equipment (PPE) being Fixed assets are tangible items held for use or for administrative purposes and are measured at cost less accumulated depreciation and any accumulated impairment. Cost comprises of the purchase price including import duties and non-refundable purchase taxes after deducting trade discounts and rebates and any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Management. Finance costs relating to acquisition of assets which take substantial period of time to get ready for intended use are also included to the extent they relate to the period up to such assets are ready for their intended use.

b) Items such as spare parts, stand-by equipment and servicing equipment are recognised if they meet the definition of property, plant and equipment.

The carrying amount of an item of PPE is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain/ loss arising from derecognition of an item of PPE is included in the statement of Profit & Loss. The gain or loss arising from the derecognition of an item of PPE would be the difference between the net disposal proceeds, if any, and the carrying amount of the item.

c) Depreciation on Property, plant and equipment are provided under straight line method as per the useful lives and manner prescribed under Schedule II to the Companies Act, 2013. Where the cost of a part of the PPE is significant to the total cost of the PPE and if that part of the PPE has a different useful life than the main PPE, the useful life of that part is determined separately for depreciation. The depreciation method applied to an asset is reviewed at each financial year-end and if there has been a significant change in the expected pattern of consumption of future economic benefits embodied in the asset, depreciation is charged to reflect the changed pattern.

e) As at each Balance sheet date, the carrying amount of assets is tested for impairment so as to determine

i) The provision for impairment loss, if any, required or

ii) The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

iii) Investments:

a) Long-Term Investments are stated at cost.

b) Current Investments are carried at lower of cost and fair value as on the Balance Sheet date.

c) Provision for diminution in value of long-term investments is made, if the diminution is other than temporary.

iv) Inventories:

a) Inventories are valued at lower of cost on FIFO basis and estimated net realizable value

b) Stores and spares which do not meet definition of PPE are accounted as inventories at Cost

v) Foreign Currency Transaction :

a)

^a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Exchange differences arising on settlement on transactions of monetary items are recognised as income / expense in the Statement of Profit & Loss in the period in which it arises.

c) Foreign Currency assets and liabilities at the year end are realigned at the exchange rate prevailing at the year end and the difference on realignment is recognized in the Statement of profit & Loss.

d) Premium / Discount in respect of Forward contract are amortized as expense / income over the period of contract. Exchange difference arising on forward contracts between the exchange rate on the date of the transaction and the exchange rate prevailing at the year end is recognized in the Statement of Profit & Loss.

vi) Revenue Recognition:

a) Revenue is generally recognized and expenditure is accounted for on their accrual except those with significant uncertainties.

b) Revenue from Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers.

c) Profit / Loss on hedging transactions with Multi Commodity Exchanges are accounted on closure of every transaction. The Open transaction as at the Balance sheet date are Marked to Market and the resultant Profit / Loss is accounted.

d) Revenue by way of Sales under the various "Gold Saving Schemes" are accounted as and when the subscribers complete their purchase transactions. The amounts received from the subscribers under the monthly schemes are shown as liability against the respective subscribers till the completion of the transactions.

e) Insurance claims are accounted, as and when settled or received.

f) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

vii) Taxes on Income:

a) Current Tax on income is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income tax act 1961, and based on the expected outcome of assessments/appeals.

^b) Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets on business loss and unabsorbed depreciation are recognized and carried forward to the extent that there is virtual certainty that sufficient taxable income will be available against which such deferred tax asset can be realised.

c) 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 guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

viii) Employee Benefits:

a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Payments to defined contribution schemes are charged as expense as and when incurred.

c) Post employment and other long term, benefits, which are defined benefit plans, are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered service. The expense is recognised based on the present value of the obligation determined in accordance with Accounting Standard 15 on "Employee Benefits". Actuarial gains & losses are charged to the Statement of Profit and Loss.

d) Termination benefits are recognised as an expense, as and when incurred.

ix) Borrowing Cost:

a) Interest and other related costs, including amortized costs of borrowings related to the project or acquisition of qualifying assets are capitalized as part of the respective assets. All the other borrowing costs are charged to revenue.

b) A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

x) Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity Shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2016

vi) Revenue Recognition:

a) Revenue is generally recognized and expenditure is accounted for on their accrual except those with significant uncertainties.

b) Revenue from Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers, which is generally on dispatch of goods.

c) Insurance claims are accounted, as and when settled or received.

d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

vii) Taxes on Income:

a) Current Tax on income is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income tax act 1961, and based on the expected outcome of assessments/appeals.

b) Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets on business loss and unabsorbed depreciation are recognized and carried forward to the extent that there is virtual certainty that sufficient taxable income will be available against which such deferred tax asset can be realized.

c) 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 guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

viii) Employee Benefits:

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Payments to defined contribution schemes are charged as expense as and when incurred.

c) Post employment and other long term, benefits, which are defined benefit plans, are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered service. The expense is recognized based on the present value of the obligation determined in accordance with Accounting Standard 15 on "Employee Benefits". Actuarial gains & losses are charged to the Statement of Profit and Loss.

d) Termination benefits are recognized as an expense, as and when incurred.

ix) Borrowing Cost:

a) Interest and other related costs, including amortized costs of borrowings related to the project or acquisition of qualifying assets are capitalized as part of the respective assets. All the other borrowing costs are charged to revenue.

b) A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

x) Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity Shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xi) Provisions and Contingencies:

a) A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined.

b) A disclosure for a 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.

xii) Leases:

a) Where the company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

b) Where the company is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss.

xiii) Cash And Cash Equivalents:

a) Cash flow is reported using indirect method, whereby net profit before tax is adjusted for the effects of transaction of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow comprises regular revenue generating, investing and financing activities of the company. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

b. Terms/rights attached to equity shares:

- The company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

- The final dividend declared, if any, is subject to the approval of the members in the Annual General Meeting.

c. Terms/rights attached to preference shares:

- The preference shares are redeemable at par at any time after the expiry of 3 years from the date of issue i.e.,31 -03-2014.

- The preference shareholders have voting rights only in respect of matters directly affecting the rights of Preference Shareholders.

- The preference shareholders have preference on the distribution of the dividend.