Notes on accounts
VI. Investments:
Non-current investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a
decline is other than temporary.
VII. Inventories:
Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, wherever considered
necessary. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads
incurred in bringing them to their respective present location and condition.
Cost of raw materials, stores and spares, packing materials, trading and other products are determined on weighted average basis.
VIII. Revenue Recognition:
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services and excise duty, adjusted
for discounts (net).
Dividend income is recognized when the right to receive payment is established.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.
IX. Employee Stock Options:
Accounting value of stock options is determined on the basis of ‘Intrinsic Value’ representing the excess of the fair market value
of Company’s equity share on the date of grant over the exercise price of the options granted under the “Employees Stock Option
Scheme” of the Company, and is being amortised as “Employee Stock Compensation Cost” on a straight-line basis over the vesting
period in accordance with the Guidance Note on “Share Based Payments” issued by the Institute of Chartered Accountants of India.
X. Foreign Currency Transactions:
a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction.
b) Monetary items denominated in foreign currencies at the year end are restated at year end exchange rates, except in cases covered
by forward contracts.
c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement
of profit and loss.
XI. Government grants and subsidies:
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with
the conditions attached to them, and (ii) the grant/ subsidy will be received.
Where the grant or subsidy relates to revenue, it is recognized as income on a accrual basis in the statement of profit and loss. Where
the grant relates to a fixed asset, it is net off from the relevant asset.
XII. Employee Benefits:
Employee benefits, inter alia, include Defined Contribution Plan and Defined Benefit Plan as under:
Defined Contribution Plan
Company’s contribution towards provident fund paid/payable during the year is recognised as expense in the Statement of Profit &
Loss under Employee Benefit Expense.
Defined Benefits Plan
Company’s liability towards gratuity and compensation towards accumulated leaves is determined by an independent actuary at the
end of the year using the projected unit credit method.
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Annual Report 2015-16
