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SUJANA METAL PRODUCTS LIMITED<br />
a price, significant risks and rewards of ownership are transferred to the customers and no effective<br />
ownership is retained.<br />
Revenue from traded goods is recognised on symbolic delivery. Significant risk and rewards incidental<br />
to ownership are transferred upon issuance of tax invoice andacknowledged by the customers.<br />
Sales are net of sales returns and trade discounts. Export turnover includes related export benefits.<br />
Excise duty recovered is presented as a reduction from gross turnover.<br />
6. Inventories<br />
Raw materials and Work-in-progress are valued at cost using the weighted average cost method.<br />
Finished goods produced and purchased are valued at cost or net realisable value, whichever is lower.<br />
Excise duty in respect of finished goods awaiting despatch is included in valuation of the Inventory.<br />
Stores and Spares are carried at cost, ascertained on a weighted average basis. Necessary provision<br />
is made in case of obsolete and non-moving items.<br />
7. Employee Benefits<br />
Short-term employee benefits (benefits which are payable within twelve months after the end of the<br />
period in which the employees render service) are measured at cost and are recognised as an expense<br />
at the undiscounted amount in the profit and loss account in the profit and loss account of the year in<br />
which the related service is rendered.<br />
Contributions to Provident Fund, a defined contribution plan, are made in accordance with the statute<br />
and are recognized as an expense when employees have rendered service entitling them to the<br />
contributions.<br />
Other long-term employee benefits (benefits which are payable after the end of twelve months from<br />
the end of the year in which the employees render service) are measured on a discounted basis by the<br />
Projected Unit Credit Method on the basis of actuarial valuation.<br />
Actuarial gains and losses are recognized immediately in the Profit and Loss Account<br />
8. Foreign Currency Transactions<br />
Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of<br />
transactions and in case of purchase of materials and sale of goods, the exchange gains / losses on<br />
settlements during the year, are charged to Profit and Loss Account.<br />
Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing<br />
on the date of Balance Sheet. Exchange gains / losses including those relating to fixed assets are dealt<br />
with in the Profit and Loss Account.<br />
In case of foreign entities, revenue items are translated at the average rate prevailing during the period<br />
and all assets and liabilities at the rates prevailing at the end of the period. Any exchange difference<br />
arising on consolidation is recognized in foreign currency translation reserve.<br />
9. Borrowing Costs<br />
Borrowing costs attributable to the acquisition or construction of qualifying assets, as defined in<br />
Accounting Standard 16 on “Borrowing Costs” are capitalized as part of the cost of such asset up to<br />
the date when the asset is ready for its intended use. Other borrowing costs are expensed as incurred.<br />
10. Taxes on Income<br />
i) Indian Entities:<br />
Income taxes are accounted for in accordance with Accounting Standard 22 on “Accounting for<br />
Taxes on Income”. Taxes comprise both current and deferred tax. Current tax is measured at the<br />
amount expected to be paid to the revenue authorities, using the applicable tax rates and laws.<br />
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future<br />
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