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Tudor India

BSE: 517451|ISIN: INE842A01017|SECTOR: Auto Ancillaries
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Tudor India is not traded in the last 30 days
Tudor India is not listed on NSE
Mar 09
Accounting Policy Year : Mar '10
(i) Basis of Accounting
 
 The Financial Statements have been prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable Accounting Standards notified under sub-section (3C) of
 Section 211 of the Companies Act, 1956, of India (the Act) and the
 relevant provisions of the Act.
 
 (ii) Fixed Assets and Depreciation
 
 (a) Fixed Assets are stated at cost of acquisition or construction less
 accumulated depreciation/ amortisation. The Company capitalises all
 costs relating to the acquisition, installation and construction of
 fixed assets, including interest on borrowed funds used to finance the
 construction and acquisition of fixed assets, up to the date when the
 assets are ready for commercial use.
 
 (b) Depreciation on factory building and plant and machinery is
 calculated on the Straight Line Method and in respect of other fixed
 assets on the Written Down Value Method, at the rates and in the manner
 prescribed under Schedule XIV to the Act, except for second hand plant
 and machinery, which is depreciated @ 20% per annum based on useful
 life estimated by the Management.
 
 (c) Assets individually costing less than Rs. 5,000 are fully
 depreciated in the year of acquisition/ construction.
 
 (d) Consideration is given at each Balance Sheet to determine whether
 there is any indication of impairment of the carrying amount of the
 fixed assets. If any indication exists, an assets recoverable amount
 is estimated.  An impairment loss is recognised whenever the carrying
 amount of an asset exceeds the recoverable amount.  The recoverable
 amount is the greater of the net selling price and value in use. In
 assessing value, the estimated future cash flows are discounted to
 their present value based on an appropriate discount factor.
 
 (iii) Deferred Taxation
 
 Deferred tax resulting from timing differences between book and tax
 profits is accounted for under the liability method, at the current
 rate of tax, to the extent that timing differences are expected to
 crystallise as deferred tax charge/ benefits in the Profit and Loss
 Account and as deferred tax liabilities/ assets in the Balance Sheet.
 
 (iv) Inventories
 
 Inventories are valued at lower of cost and net realisable value.
 
 (a) Cost of Raw Materials, Stores and Spare Parts, Packing Materials
 and Work-in-Progress are ascertained on First-In-First-Out basis.
 
 (b) Cost of Work-in-Progress, Finished Goods and Trading Products
 include raw material cost, cost of conversion and other costs incurred
 in bringing the inventories to their present location and condition.
 
 (c) Lead scrap is valued at the prevailing rate for lead, net of
 processing charges.
 
 (v) Borrowing Cost
 
 Borrowing costs directly attributable to the acquisition/ construction
 of an asset are apportioned to the cost of the fixed assets up to the
 date on which the asset is put to use/ commissioned.
 
 (vi) Warranty
 
 Provision for warranty in respect of batteries sold is consistently
 provided on the basis of best estimates, past experience and
 statistical data.
 
 (vii) Employee Benefits:
 
 Defined Contribution Plan
 
 The Company has Defined Contribution plan for post employment benefit
 namely Provident Fund which is recognised by the income tax authorities
 and administered through appropriate authorities.
 
 The Company contributes to a Government administered Provident Fund and
 has no further obligation beyond making its contribution.
 
 The Company makes contribution to State plan namely Labour Welfare Fund
 and has no further obligation beyond making the payment to them.
 
 The Companys contributions to the above funds are charged to revenue
 every year.
 
 Defined Benefit Plan
 
 The Company has Defined Benefit Plan comprising of Gratuity Fund. The
 gratuity scheme is funded through Group Gratuity - cum - Life Assurance
 Policy with Life Insurance Corporation of India (LIC). Liability for
 Defined Benefit Plan is provided on the basis of actuarial valuation
 carried out by an independent actuary as at the Balance Sheet date. The
 actuarial valuation method used by independent actuary for measuring
 the liability is the Projected Unit Credit Method.
 
 Termination benefits are recognised as an expense as and when incurred.
 
 Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised
 immediately in the Profit and Loss Account as income or expense.
 
 Provision for Gratuity in the Balance Sheet is disclosed net of
 accumulated fund balance available with LIC.
 
 Other Employee Benefits
 
 The employees of the Company are entitled to leave encashment as per
 the leave policy of the Company. The Company has taken Group Leave
 Encashment - cum - Life Assurance Policy from the LIC. The liability
 for leave encashment is provided based on actuarial valuation carried
 out by an independent actuary as at the Balance Sheet date. Provision
 for Leave Encashment in the Balance Sheet is disclosed net of
 accumulated fund balance available with LIC.
 
 (viii) Provisions and Contingent Liabilities
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is 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 but the likelihood of outflow of
 resources is remote, no provision or disclosure as specified in
 Accounting Standard 29 -  Provisions, Contingent Liabilities and
 Contingent Assets, issued by the Institute of Chartered Accountants of
 India is made.
 
 (ix) Foreign Currency Transactions:
 
 Foreign currency transactions during the year are recorded at the
 exchange rates prevailing on the dates of the transactions. Foreign
 currency denominated monetary assets and liabilities, are translated
 into rupees at the exchange rates prevailing at the date of the Balance
 Sheet. Exchange differences are recognised in the Profit and Loss
 Account of the year. Non-monetary foreign currency items are carried at
 cost.
 
 (x) Sales
 
 Sales revenue is recognised on transfer of significant risks and
 rewards of ownership of the goods to the buyer.  Sales comprise amounts
 invoiced for goods sold inclusive of excise duty and net of sales tax.
 Export sales are recognised on the date of cargo receipts, bill of
 lading or other relevant documents, in accordance with the terms and
 conditions for sales.
Source : Dion Global Solutions Limited
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