Accounting Policies of ACI Infocom Ltd. Company

Mar 31, 2024

Summary of significant accounting policies

1.1 Basis of preparation & presentation of financial statements

The financial statements of the company have been prepared under historical cost convention on the accrual
basis of accounting, are in accordance with the applicable requirements of the Companies Act 2013 and
comply in all material aspects with the Indian Accounting Standards (hereinafter referred as to ‘Ind. AS’) as
notified by ministry of corporate affairs in pursuant to section 133 of Companies Act, 2013 read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules 2016.

The accounting policies have been consistently applied unless otherwise stated. All assets and liabilities have
been classified as current or non-current as per the Company’s normal operating cycle and other criteria set
out in the Division II of Schedule III to the Act 2013. The Company considers 12 months to be its normal
operating cycle for the purpose of current or non-current classification of assets and liabilities.

1.2 Summary of significant accounting policies

a. Use of estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires the
management to make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period.
Although these estimates are based on the management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.

b. Property Plant & Equipment’s
Tangible assets

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost comprises of purchase price inclusive of taxes etc. up to the date the asset is
ready for its intended use. Depreciation is provided under the written down value method at the rates and in
the manner prescribed under Schedule II to the Companies Act, 2013.

Intangible assets

Intangible assets are stated at cost, net of accumulated depreciation and impairment of losses, if any.
Depreciation is provided under written down value method at the rate and in the manner prescribed under
Schedule II to the companies Act, 2013. Currently company does not hold any intangible assets.

c. Depreciation/amortization
Tangible assets

Depreciation on fixed assets is calculated on a written down value method at based on the useful lives
estimated by the management, or those prescribed under the Schedule II of the Companies Act, 2013.

Depreciation method, useful life and residual value are reviewed periodically. Leasehold land and
improvements are amortised on the basis of duration and other terms of lease. The carrying amount of PPE is
reviewed periodically for impairment based on internal / external factors. An impairment loss is recognised
wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the
greater of the asset’s net selling price and value in use.

De-recognition

PPE are de-recognized either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference
between the net disposal proceeds and the carrying amount of the asset is recognized in the
Statement of Profit and Loss in the period of de-recognition.

Intangible assets

Depreciation on Intangible assets is calculated on a written down value method at based on the
useful lives estimated by the management, or those prescribed under the Schedule II of the
Companies Act, 2013.

d. Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost
of the respective asset. All other borrowing costs are expensed in the period they occur.

e. Investments

Investments are classified as current investments and long-term investments as per information and
explanation given by the management.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and
directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at cost or FMV whichever is lower and
Long-term investments are carried at FMV. FMV of Long-term Investment is determined by the
management from the latest audited report of the Investment companies if it is not listed in Stock-
Exchange of India. On disposal of an investment, the difference between it carrying amount and net
disposal proceeds is charged or credited to the statement of profit and loss. Investments transfer to
holding company at cost gain or loss on said investment book by holding company.

f. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the applicable interest rate. Interest income is included under the head “other income” in the
statement of profit and loss.

Dividend Income

Revenue is recognized when the Company’s right to receive the payment is established, which is generally
when shareholders approve the dividend.

Other Income

Other incomes are accounted on accrual basis, except interest on delayed payment by debtors and liquidated
damages which are accounted on acceptance of the Company’s claim.

g. Inventories

Inventories comprise of traded goods, stores and spares are valued at cost or at net realisable value
whichever is lower. Cost of traded goods, stores and spares is determined on weighted average basis. Stores
and spares, which do not meet the definition of property, plant and equipment, are accounted as inventories.
Net realizable value is the estimated selling price in the ordinary course of business and estimated costs
necessary to make the sale.

The Company has valued its construction materials and consumables at lower of cost or net realisable value.
The construction materials and consumables purchased for construction work, issued to construction are
treated as consumed.

h. Accounting for taxes on income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Current and deferred tax shall
be recognized as income and expenses and included in profit and loss for the period, except to the extent that
the tax arises from (a) a transaction or event which is recognized in the same or a different period, outside
profit or loss, either in other comprehensive Income or directly in equity or (b) a business combination.
Deferred taxes recognized in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purpose and corresponding amounts used for taxation purpose except to the
extent it relates to business combination or to an item which is recognized directly in equity and in other
comprehensive Income.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the assets can be utilized. A deferred tax asset shall be recognized for
the carry-forward of unused tax losses and unused tax credits to the extent that it is probable that future
taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.
Deferred tax assets are reviewed at each reporting date and Reduced to the extent that it is no longer probable
that the related tax benefit will be Realize. . A deferred tax liability is recognized based on the expected
manner of realization or settlement of carrying amount of assets and liabilities

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current
tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same
taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a period is charged to the statement of profit and loss as current tax.
The Group recognizes MAT credit available as an asset only to the extent that there is convincing evidence
that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit
is allowed to be carried forward. In the period in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative
Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and
loss and shown as “MAT Credit Entitlement.” The Group reviews the “MAT credit entitlement” asset at each
reporting date and writes down the asset to the extent the Group does not have convincing evidence that it
will pay normal tax during the specified period.

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Mar 31, 2016

I. CORPORATE INFORMATION

The Company has incorporated on 21/12/1982 and the company is in to Construction and Allied business Activities.

II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘the Act''), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

2. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

3. Fixed Assets

Fixed Assets have been stated at cost of acquisition inclusive of expenses directly attributable to the acquisition of such assets.

4. Depreciation and Amortization

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

5. Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of property under construction held as inventory includes cost of purchases, construction cost, and other cost incurred in bringing the properties to their present location and condition.

6. Material events occurring after the Balance Sheet

Material events occurring after the Balance Sheet date have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

7. Prior Period Adjustment

Expenses and income pertaining to earlier / previous years are accounted as Prior Period Items.

8. Investments

Long-term investments are valued at cost. Provision for diminution in the value of investments if any is made, if such diminution is other than of temporary nature.

9. Revenue Recognition

(a) Revenue from disposal of properties is recognized on legal completion of the contract. Where properties are under development, revenue is recognized when significant risk and rewards of ownership and effective control of the real estate have been transferred to the buyer. If the revenue recognition criteria have been met before construction is complete then obligation is recognized for the cost to complete the construction at the same time as the sale is recognized.

(b) Rent Income is recognized on the basis of term with lessee.

(c) Interest Income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable. Share of profit/ Loss from partnership firm recognized on the basis of confirmation from partnership firm.

10. Income Tax

Tax Expenses comprise Current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authority in accordance with the income tax Act,1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where company operate.

Deferred tax on timing differences between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets recognized only when there is a reasonable certainty of their realization.

11. Impairment

The Company reviews the carrying value of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value at appropriate discount rates.

12. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non -occurrence of one or more uncertain future events not wholly within control of the Company. A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation at the year end date. Contingent assets are not recognized or disclosed in the financial statements.

13. Segment Reporting

The Company is engaged in real estate business being a single segment hence disclosure as requirements of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable.

14. Lease

Operating Lease payment is recognized as an expense in the statement of profit and loss as per terms of agreement.

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Mar 31, 2015

1. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

2. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

3. Fixed Assets

Fixed Assets have been stated at cost of acquisition inclusive of expenses directly attributable to the acquisition of such assets.

4. Depreciation and Amortization

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

5. Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of property under construction held as inventory includes cost of purchases, construction cost, and other cost incurred in bringing the properties to their present location and condition.

6. Material events occurring after the Balance Sheet

Material events occurring after the Balance Sheet date have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

7. Prior Period Adjustment

Expenses and income pertaining to earlier / previous years are accounted as Prior Period Items.

8. Investments

Long-term investments are valued at cost. Provision for diminution in the value of investments if any is made, if such diminution is other than of temporary nature.

9. Revenue Recognition

(a) Revenue from disposal of properties is recognized on legal completion of the contract. Where properties are under development, revenue is recognized when significant risk and rewards of ownership and effective control of the real estate have been transferred to the buyer. If the revenue recognition criteria have been met before construction is complete then obligation is recognized for the cost to complete the construction at the same time as the sale is recognized.

(b) Rent Income is recognized on the basis of term of agreements entered with lessee.

(c) Interest Income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable. Share of profit from partnership firm recognised on the basis of confirmation from partnership firm.

10. Income Tax

Tax Expenses comprise Current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authority in accordance with the income tax Act,1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where company operate.

Deferred tax on timing differences between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets recognized only when there is a reasonable certainty of their realization.

11. Impairment

The Company reviews the carrying value of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value at appropriate discount rates.

12. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non -occurrence of one or more uncertain future events not wholly within control of the Company. A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation at the year end date. Contingent assets are not recognized or disclosed in the financial statements.

13. Segment Reporting

The Company is engaged in real estate business being a single segment hence disclosure as requirements of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable.

14. Lease

Operating Lease payment is recognized as an expense in the statement of profit and loss as per terms of agreement.

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Mar 31, 2014

1. Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles under the historical cost convention on an accrual basis and are in conformity with mandatory accounting standards, as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts qf income and expenses during the period. Management believes that the estimates used in the''preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

3. Fixed Assets

Fixed Assets have been stated at cost of acquisition inclusive of expenses directly attributable to the acquisition of such assets.

4. Depreciation and Amortization

Depreciation on fixed asset has been provided on the straight-tine method as per the rates prescribed under schedule XIV of the Companies Act, 1956. However assets costing less than Rs. 5,000 each are fully depreciated n the year of purchase.

5. Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of property under construction held as inventory includes cost of purchases, construction cost, and other cost incurred in bringing the properties to their present location and condition.

6. Material events occurring after the Balance Sheet

Material events occurring after the Balance Sheet date have been taken cognizance of liabilities '' which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

7. Prior Period Adjustment

Expenses and income pertaining to earfier / previous years are accounted as Prior Period Items.

8. Investments

Long-term investments are valued at cost. Provision for diminution in the value of investments if any is made, if such diminution is other than of temporary nature.

9. Revenue Recognition

(a) Revenue from disposal of properties is recognized on legal completion of the contract. Where properties are under development, revenue is recognized when significant risk and rewards of ownership and effective control of the real estate have been transferred to the buyer. If the revenue recognition criteria have been met before construction is complete then obligation is recognized for the cost to complete the construction at the same time as the sale is recognized.

(b) Interest Income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable. Share of profit from partnership firm recognised on the basis of confirmation from partnership firm.

10. Income Tax

Tax Expenses comprise Current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authority in accordance with the income tax Act,1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where company operate.

Deferred tax on timing differences between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets recognized only when there is a reasonable certainty of their realization.

11. Impairment

The Company reviews the carrying value of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value at appropriate discount rates.

12. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non -occurrence of one or more uncertain future events not wholly within control of the Company. A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation at the year end date. Contingent assets are not recognized or disclosed in the financial statements.

13. Segment Reporting

The Company is engaged in real estate business being a single segment hence disclosure as requirements of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable

14. Lease

Operating Lease payment is recognized as an expense in the statement of profit and loss as per terms of agreement.

(b) Terms & Right attached to equity shares

The company has only one class of equity shares having a par value of Rs.1/- per share. Each Holder of equity share is entitled to one vote per share. In the event of liquidation, shareholder will be entitled to receive remaining assets of the company after distribution of all preferential amount. The distribution will be in proportion to the member of equity share held by the share holder.

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Mar 31, 2012

1. Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles under the historical cost convention on an accrual basis and are in conformity with mandatory accounting standards, as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

3. Fixed Assets

Fixed Assets have been stated at cost of acquisition inclusive of expenses directly attributable to the acquisition of such assets.

4. Depreciation and Amortization

Depreciation on fixed asset has been provided on the straight-line method as per the rates prescribed under schedule XIV of the Companies Act, 1956. However assets costing less than Rs. 5,000 each are fully depreciated in the year of purchase.

5. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing exchange rates on the transaction dates. Realized gains and losses on settlement of foreign currency transactions are recognized in the profit and loss account. Foreign currency monetary assets and liabilities at the year end are translated at the year end exchange rates and resultant exchange differences are recognized in the profit and loss account.

6. Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of property under construction held as inventory includes cost of purchases, construction cost, and other cost incurred in bringing the properties to their present location and condition.

7. Material events occurring after the Balance Sheet

Material events occurring after the Balance Sheet date have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

8. Prior Period Adjustment

Expenses and income pertaining to earlier / previous years are accounted as Prior Period Items.

9. Investments

Long-term investments are valued at cost. Provision for diminution in the value of investments if any is made, if such diminution is other than of temporary nature.

10. Revenue Recognition

(a) Revenue from the sale of goods is recognized upon passage of title to the customer, which generally coincides with their delivery. Sales are recorded net of trade discounts, rebates, and sales taxes.

(b) Revenue from disposal of properties is recognized on legal completion of the contract. Where properties are under development, revenue is recognized when significant risk and rewards of ownership and effective control of the real estate have been transferred to the buyer. If the revenue recognition criteria have been met before construction is complete then obligation is recognized for the cost to complete the construction at the same time as the sale is recognized.

(c) Interest Income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable. Share of profit from partnership firm recognised on the basis of confirmation from partnership firm.

11. Income Tax

Tax Expenses comprise Current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authority in accordance with the income tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where company operate.

Deferred tax on timing differences between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets recognized only when there is a reasonable certainty of their realization. Unrecognized deferred tax assets on previous year taxation losses have been added to opening reserves.

12. Impairment

The Company reviews the carrying value of tangible and intangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value at appropriate discount rates.

13. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non -occurrence of one or more uncertain future events not wholly within control of the Company. A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation at the year end date. Contingent assets are not recognized or disdosed in the financial statements.

14. Segment Reporting

The company's segment is identified as business segment based on nature of products, risk, returns, internal organization and management structure. Unallocated corporate revenue and expenses which relate to the enterprise as a whole are not attributable to segments.

15. Lease

Operating Lease payment is recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

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Mar 31, 2010

A) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attribute cost of bringing it into working condition for an intended use. Expenditure for additional improvements is capitalized. When assets are sold or discarded, their cost and accumulated depreciation are included in the profit & loss account.

b) DEPRECIATION

Depreciation on fixed asset has been provided on the straight-line method as per the rates prescribed under schedule XIV of the Companies Act, 1956. For Assets acquired on 31.03.2010, Depreciation will be provided from next financial year 2010-11.

c) FOREIGN CURRENCY TRANSACTIONS

Transactions arising in Foreign Currencies of import of material during the year are converted at the rate prevailing on the date of transactions. Liabilities payable in Foreign Currency are restated at the year end exchange rate and differences arising from such restatement are included in profit & loss account.

d) INVENTORIES

Inventories are valued at cost or net realizable value whichever is lower.

e) GRATUITY

The liability for Gratuity has not been provided, since there were no eligible employees for Gratuity as at the end of financial year.

f) LEAVE ENCASHMENT

Payment on account of leave encashment is not accruable at the end of the financial year as leave get lapsed on the last day of the fiscal year as per companys circular issued to its employees.

g) MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT W/OFF)

I) Goodwillonarisingonamalgamationbeingwrittenoffoveraperiddoftenyears. ii) Preliminary expenses and capital issue expenses are being written off over a period of five and ten years respectively.

h) INVESTMENTS

Investments are long term in nature and have been stated at cost.

i) REVENUE RECOGNITION

Revenue from the sale of goods is recognized upon passage of title to the customer, which generally coincides with their delivery. Sales are recorded net of trade discounts, rebates, and sales taxes but includes excise duty, where applicable.

j) INCOME TAX

Deferred tax assets relating to unabsorbed carry forward losses and depreciation are recognized only to the extent there is virtual certainty that the same can be realized in future and in respect of other items where there is reasonable certainty as to realization.