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