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Diamond Power Infrastructure
BSE: 522163|NSE: DIAPOWER|ISIN: INE989C01012|SECTOR: Cables - Power/Others
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« Mar 12
Accounting Policy Year : Mar '13
1.  Method of Accounting: The Financial Statements have been prepared
 on historical cost convention.  The Company follows the accrual basis
 of accounting. The Financial Statements are prepared in accordance with
 the accounting standards specified in the Companies (Accounting
 Standards) Rules, 2006 notified by the Central Government in terms of
 Section 211(3C) of the Companies Act, 1956.
 
 2.  Revenue Recognition: Sales includes inter- divisional transfers,
 sale of scrap, Sales Outsource Products, Sales related to Engineering
 Procurement and Contract Services, Excise duty Paid, Value Added tax
 and Invoices for price escalation as per Contracts with the relevant
 customers on accrual basis.
 
 3.  Fixed Assets: Fixed Assets are stated at cost less accumulated
 depreciation up to the year. Expenditure incurred on improvement or
 replacement, which in the opinion of the management is likely to
 substantially increase the life of the assets and future benefits from
 it is capitalized. Capital expenditure includes advances for assets
 under erection/installation are being grouped under capital work in
 progress.
 
 4.  Depreciation: Depreciation is charged on Straight Line basis at
 rates specified in Schedule XIV of the Companies Act.1956. Depreciation
 on addition deletion or discarded Fixed Assets during the year is
 charged on pro rata basis.
 
 5.  Expenditure during construction period: All pre- operative project
 expenditure (net of income accrued), including interest on borrowings
 incurred up to the date of installation is capitalized are added
 pro-rata to the cost of fixed assets.  Foundation costs are allocated
 as certified by management.
 
 6.  Investment: Long-term investments are valued at cost. Provision is
 made for diminution, other than temporary, in the value of investments.
 
 7.  Inventories:
 
 a) Inventories of finished goods are valued at lower of costs or net
 realizable value inclusive of excise duty. Work in process (including
 finished stock pending QC inspection) is valued at cost representing
 material, labour and apportioned overheads as certified by the
 management. Other inventories are valued at cost. Materials related to
 Projects under implementation are valued at standard cost.
 
 b) Cost of work-in-progress and finished goods includes material cost,
 labour cost, and manufacturing overheads absorbed on the basis of
 normal capacity of production.
 
 8.  Provident Fund and Retirement Benefits: Contribution to Provident
 Fund is accounted on actual liability basis. Provision for Gratuity and
 Leave Encashment is made based on actuarial valuation.
 
 9.  Excise Duty: Excise Duty payable on finished goods held as stock in
 the works is included in the expenditure and in such stocks as per the
 provisions of Section 145 of the Income tax Act, 1961.
 
 10.  Amortisation: Expenditure on Fire Resistant Low Smoke Project
 (FRLS) & High Sensitivity & High Conductivity Conductors (HSHC) have
 been amortized over a period of five years. One- fifth portion of the
 expenses deferred on Aerial Bunch Cable Project (ABC Project) have been
 charged to the revenue for the financial period.
 
 11.  Foreign Currency Transactions: The Company has no Branch offices
 outside India. The Foreign currency transaction are recorded on initial
 recognition in the reporting currency by applying the exchange rate
 prevailing at the date of transaction .Any Income or Expense on account
 of exchange rate difference is recognized in the Income and Expenditure
 Account
 
 12.  Borrowing Costs: Borrowing costs that are attributable to the
 acquisition, construction or production of qualifying assets are
 capitalized as part of the cost of such assets. A qualifying asset is
 one that necessarily takes a substantial period of time to get ready
 for its intended use. All other borrowing costs are charged to revenue.
 
 13.  Income Tax: Provision for Current Income Tax is made after
 considering Company''s claims under the Income Tax Act, 1961 .This
 Liability is calculated at the applicable tax rate or Minimum Alternate
 Rate under Section 115JB of the Income Tax Act 1961 as the case may be.
 
 14.  Deferred Tax : Deferred Tax is Calculated at the tax rates and
 Laws that have been enacted or substantially enacted as of Balance
 Sheet date and is recognized on timing differences that originated 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
 released.
 
 15.  Impairment of Assets: The Company has examined carrying cost of
 its identified Cash Generating Units (CGU) by comparing present value
 of estimated future cash flows from such CGUs, in terms of Accounting
 Standard-28 on impairment of Assets, and in absence of any indication
 of being potential impairment of Assets, no provision for impairment is
 required as assets of none of CGUs are impaired during the financial
 year under consideration.
 
 16.  Uses 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 financial statements
 and the reported amount of revenue and expenses during the reporting
 period. Difference between the actual results and estimates are
 recognised in the period in which results are known/materialised.
 
 17.  Derivative Contracts: Company as such in the current financial
 year has not entered into any such Derivative Contracts .
 
 18.  Operating Cycle: Assets and liabilities other than those relating
 to long-term contracts (i.e. supply or turnkey contracts) are
 classified as current if it is expected to realise or settle within 12
 months after the balance sheet date. In case of long- term contracts,
 the time between acquisition of assets for processing and realisation
 of the entire proceeds under the contracts in cash or cash equivalent
 exceeds one year. Accordingly for classification of assets and
 liabilities related to such contracts as current, duration of each
 contract is considered as its operating cycle
Source : Dion Global Solutions Limited
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