a. Corporate Information:
VXL Instruments Limited is a Public Limited Company listed in Mumbai
Stock exchange. The Company is engaged in the business of manufacture
and sale of data processing units
b. Basis of preparation:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material aspects with the Accounting Standards notified
under the Companies (Accounting Standard ) Rules, 2006 (as amended) and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis and under the historical
cost convention except for land which are carried at revalued amounts.
The accounting policies adopted in the preparation of financial
statements are consistent with those of the previous year.
c. Uses of Estimates:
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses for
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as on the date of the
Balance Sheet. Differences, if any, between the actual results and
estimates is recognized in the period in which the results are known.
d. Fixed assets:
Fixed assets are disclosed in the accounts at historical cost together
with all costs directly attributable to their acquisition less
accumulated depreciation. Land has been stated at revalued cost.
Depreciation is computed on the written-down value of assets and
provided at the rates mentioned in Schedule XIV of the Companies Act,
1956. In the case of additions/deletions, pro-rata depreciation is
provided from the date of additions / up till the date of disposal. In
respect of assets with cost not exceeding Rs.5,000/- depreciation at
the rate of 100% is provided for the whole year.
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vest with the lessor are recognised as operating
leases. Lease rentals under operating leases are recognised in the
profit and loss account on a straight-line basis.
g. Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment of the carrying amount of
Company''s assets. If any indication exists, the recoverable amount of
such assets is estimated. An impairment loss is recognized whenever the
carrying amount of the assets exceeds its recoverable amount. The
recoverable amount is greater of the net selling price and value in
use. In assessing the value in use, the estimated future cash flows are
discounted to their present value, based on appropriate discounting
factor. After impairment, depreciation is provided on the revised
carrying amount of the assets over its remaining useful life. A
previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However, the carrying value
after reversal is not increased beyond the carrying value that would
have prevailed by charging usual depreciation as if there was no
Non current investments are valued at cost less provision, if any, for
permanent diminution in value. Current investments are valued at lower
of cost and net realisable value.
Inventories are valued at lower of cost (weighted average) and
estimated net realisable value. Provision has been made in the accounts
for damaged, obsolete and slow moving items.
j. Employee Benefits:
1. Post employment benefit plans:
Contributions to defined contribution retirement benefit schemes are
recognized as an expense when employees have rendered services
entitling them to contributions. For defined benefit schemes, the cost
of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each balance
sheet date. Actuarial gains and losses are recognised in full in the
profit and loss account for the period in which they occur. Past
service cost is recognised immediately to the extent that the benefits
are already vested, and otherwise is amortized on a straight-line basis
over the average period until the benefits become vested. The
retirement benefit obligation recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognised past service cost, and as reduced by the fair
value of scheme assets. Any asset resulting from this calculation is
limited to the present value of available refunds and reductions in
future contributions to the scheme.
2. Short term Employee Benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognised
during the period when the employee renders the service. These benefits
include compensated absences such as paid annual leave.
k. Foreign currency transactions:
In respect of foreign currency transactions during the year, the same
have been accounted at the exchange rate prevailing as on the date of
transaction. In respect of current assets and current liabilities at
the close of the accounting year, gains/losses arising out of
translations at year end exchange rates are dealt with in the Profit &
l. Intangible assets:
Revenue expenditure on product development is treated as an Intangible
asset, grouped under fixed assets and amortized over the estimated
period of life. An intangible asset is derecognised (eliminated from
the balance sheet) on disposal or when no future economic benefits are
expected from its use and subsequent disposal.
m. Income Tax:
Provision for Current Income Tax is made in the books of account based
on taxable income computed as per the provisions of the Income Tax Act,
Deferred tax is recognised in respect of timing differences on account
of differences between accounting income and taxable income arising in
one period and capable of adjustment in subsequent period(s). In
respect of deferred tax asset, the same is recognised in the books of
account if there is certainty of availability of future taxable income
against which the same can be set off. This asset will be reviewed at
each balance sheet date to verify adjustment thereof.
Warranties are recognised as and when claims are lodged by customers,
to the extent agreed to by the Company.
o. Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such asset. A qualifying asset is one that takes substantial period
of time to get ready for intended use or sale. All other Borrowing
Costs are charged to revenue.
p. Earning Per Share:
The earnings considered in ascertaining the Company''s earnings per
share comprise of the net profit after tax. The number of shares used
in computing the basic earnings per share is the weighted average
number of equity shares outstanding during the year. The number of
shares used in computing diluted earnings per share comprises the
weighted average shares considered for deriving basic earnings per
share, and also the weighted average number of shares, if any, which
would have been issued on the conversion of dilutive potential equity
q. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurements
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
Notes to the Accounts. Contingent Assets are neither recognised nor
disclosed in the financial statements.
r. Segment Reporting:
Revenue, operating results, assets and liabilities has been identified
to represent separate segments on the basis of their relationship to
the operating activities of the segment. Assets, liabilities, revenue
and expenses which are not allocable to separate segment on a
reasonable basis, are included under Un-allocated.