i. Basis of Accounting
The Financial Statement are prepared under historical cost convention
and generally on accrual basis and are in accordance with the
requirement of the Companies Act, 1956.
ii. Fixed Assets
a) Fixed Assets are stated at their original cost which includes
expenditure incurred in the acquisition.
b) Depreciation on fixed assets has been provided on written down value
method and depreciation on windmill has been provided on state line
method as per the rates prescribed in the Schedule XIV to the Companies
Act, 1956. Depreciation on addition / deductions during the year is
provided on pro-rata basis.
iii. Intangible Assets :
a) Expenditure incurred for acquiring Software is stated at acquisition
cost less accumulated amortisation. They are amortised over their
useful life not exceeding five years.
b) Goodwill has not been amortised.
Long term investments are stated at cost. Provision for temporary fall
in market value, if any, is not provided for.
v. Employee Retirement Benefits
1) Post: Employment Employee Benefits
a) Defined Contribution Plans
The Company has Defined Contribution Plan for Post employment benefits
in the form of Provident Fund for all employees which is administered
by Regional Provident Fund Commissioner Provident Fund is classified as
defined contribution plan as the Company has no further obligation
beyond making the contributions. The Company''s contribution to Defined
Contribution Plan is changed to the statement of Profit and Loss as and
b) Defined Benefit Plans
Funded Plan: The Company has defined benefit plan for Post-
employment benefit in the form of Gratuity for all employees which is
administered through Life Insurance Corporation (LIC).
Liability for above defined benefit plan is provided on the basis of
valuation, as at the Balance Sheet date, carried out by an independent
actuary. The acturial method used for measuring the liability is the
Projected Unit Credit method.
2)Other Long-term Employee Benefit:
Liability for Compensated Absences (unutilized leave benefit) is
provided on the basis of valuation, as at the Balance Sheet date
carried out by an independent actuary. The acturial valuation method
used for measuring the liability is the Projected Unit Credit method in
respect of past service.
3) Termination benefits are recognized an expense as and when incurred.
4) The acturial gains and losses arising during the year are recognized
in the statement of Profit and Loss of the year without resorting to
Sales are net of sales tax, sales returns, claims and discount etc.
Goods in trade have been valued At Cost or market value whichever is
viii. Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Current tax provision has been determined on the basis of reliefs,
deductions available under the Income Tax Act. Deferred Tax is
recognized for all timing differences, subject to the consideration of
prudence, applying the tax rates that are applicable on Balance Sheet
ix. Impairment of Assets
Impairment of assets are assessed at each balance sheet date and loss
is recognised wherever the receivable amount of an assets less than its
x. Foreign Currency Transaction
a) Foreign currency transactions are recorded at exchange rate
prevailing on the date of transaction.
b) Foreign currency receivable/payables at the year end an translated
at exchange rates applicable as on that date.
c) Any gains or losses arising due to exchange differences at the time
of translation or settlement are accounted for in the statement of
Profit & Loss.
xi. Provisions, Contingent Liabilities and Assets
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty are treated as contingent and
disclosed by way of notes on accounts. Contingent assets are neither
recognised nor disclosed in the financial statements.