Accounting Policies of Beeyu Overseas Ltd. Company

Mar 31, 2024

13 SIGNIFICANT ACCOUNTING POLICIES

13.01 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified
under section 133 of the Companies Act, 2013 (‘the Act’), The financial statements have also been prepared in
accordance with the relevant preparation requirement of the Companies Act, 2013. The Company has adopted Ind
AS from April 1, 2017,

13.02 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with historical cost conventionsexcept for certain items that are
measured at fair values, as explained in the accountingpolicies.

Fair Value is the price that would be received to sell an asset or paid to transfer a liability transaction between the
market participants at the measurement date, regardless of whether that price is directly observable or estimated
using another valuation technique. In estimating the fair value of an asset or a liability, the Company considers the
asset or liability characteristics at the measurement date. Fair value for measurement and/or disclosure purposes in
these financial statements is determined on such a basis, except for the Share-Based Payment transactions which
are within the scope of Ind AS 102 - Share-Based Payments; Leasing transactions that are within the scope of Ind AS
116 - Leases; and measurement that have some similarities to fair value but are not fair value such as net realizable
value in Ind AS 2 - Inventories or value in use in Ind AS 36 - Impairment of Asset.

13.03 USE OF ESTIMATES

The preparation of the financial statements in conformity with Ind AS requires the Management to make judgments,
estimates, and assumptions that affect the application of the accounting policies and the reported amounts of assets
and liabilities, disclosures of contingent liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revision of the accounting estimates are recognised in the period in
which the estimate is revised if the estimate affects only that period; they are recognised in the period of revision and
future periods if the revision affects both the current and future periods.

13.04 PROPERTY, PUNT, AND EQUIPMENT-TANGIBLE ASSETS

Property, plant, and equipment are stated at the cost of acquisition or construction less accumulated depreciation
and impairment, if any. For this purpose, the cost includes deemed costs which represent the carrying value of the
property, plant, and equipment recognised as at April 1,2016 measured as per the previous GAAP.

Cost is inclusive of the inward freight, duties and taxes, and incidental expenses related to the acquisition of the fixed
asset. Expenses capitalized include borrowing costs, wherever applicable, directly attributable to the acquisition,
construction, and production of qualifying assets. All upgrades/enhancements are expensed off as revenue expenditure
unless they bring significant additional benefits.

An item of property, plant, and equipment is de-recognised upon disposal or when no future • economic benefits are
expected to arise from the continued use of an asset. Any gain or loss arising from the disposal or retirement of an
item of property, plant, and equipment is determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the Statement of Profit and Loss.

Depreciation on these assets commences when they are ready for their intended use which is generally on
commissioning. Items of property, plant, and equipment are depreciated in a manner that amortizes the cost (or other
amount substituted for cost) of the asset after commissioning, less its residual value, over their useful lives as specified
in Schedule II of the Companies Act, 2013 on a straight line basis.

The Management estimates the useful lives for the fixed assets as follows:-

Office Buildings 60 Years

Furniture & Fixtures 10 Years

Office Equipment 3 Years

The residual values and useful lives of the property, plant, and equipment are reviewed at each balance sheet date
and changes, if any, are treated as changes in accounting estimates.

13.05 IMPAIRMENT OF ASSETS

Impairment Loss, if any, is provided to the extent the carrying amount of the asset exceeds their recoverable amount.
Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses
recognised no longer exist or have decreased. Such reversals are recognized as an increase in carrying amounts of
the asset to the extent it does not exceed the carrying amounts that would have been determined (net of amortisation
or depreciation) had no impairment loss been recognised in previous years.

13.06 FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and financial liabilities are recorded when the Company becomes a party to the contractual provision
of the relevant instrument and are initially measured at fair value. Transactions cost directly attributable to the acquisition
or issue of the financial assets and financial liabilities (other than financial assets and financial liabilities measured at
fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets
or financial liabilities. Purchase or sale of financial assets that require delivery of assets within a time frame established
by regulation or convention in the marketplace (regular way traders) are recognised on trade date i.e. the date when
the Company commits to purchase or sell the asset.

• Recognition and De-recognition of Financial Assets:

Financial Assets include Investments, Trade Receivables, Advances, Security Deposits, Cash, and Cash
Equivalents. Such assets are initially recognised at the transaction price when the Company becomes party to
contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued
through the Statement of Profit and Loss.

Financial Assets are de-recognised when the right to receive cash flows from the asset has expired or has been
transferred and the Company has transferred substantially all the risks and rewards of ownership,

• Classification / Re-classification of Financial Assets:

Management determines the classification of an asset at initial recognition depending on the purpose for which
the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial Assets are classified as those measured at:

a) Amortised cost, where the financial assets are held solely for the collection of cash flows arising from payments
of principal and/or interest.

b) Fair value through other comprehensive income (FVTOCI), where the financial asset is held not only for the
collection of cash flows arising from payments of principal and/or interest but also from the sale of such
asset. Such assets are subsequently measured at fair value, with unrealised gain or losses arising from
changes in fair value being recognised in other comprehensive income.

c) Fair value through profit or loss (FVTPL), where the assets are measured in accordance with the approved
investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such
assets are subsequently measured at fair value, with unrealised gain or losses arising from changes in fair
value being recognised in the Statement of Profit and Loss in the period in which they arise.

Trade Receivables, Advances, Security Deposits, Cash, and Cash Equivalents are classified for measurement at
amortised cost while investments may fall under any of the aforesaid classes.

When and only when the business model is changed, the Company shall reclassify all the affected financial
assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through
other comprehensive income, fair value through profit or loss without retaining the previously recognised gains,
losses and interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial
instruments.

• Impairment of Financial Assets:

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as
investments, trade receivables, advances, security deposits held at amortised costs, and financial assets that are
measured at fair value through other comprehensive income are tested for impairment based on information or
evidences available without undue cost or effort.

Expected credit losses are assessed and loss allowances are recognised if the credit quality of the financial asset
has deteriorated significantly since initial recognition.

• Financial Liabilities:

Borrowings, Trade Payable, and other financial liabilities are initially recognised at the value of the respective
contractual obligations. They are subsequently measured at amortised cost Any discount or premium on redemption
or settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the
effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. Financial Liabilities
are de-recognised when the liability is extinguished i.e., . when the contractual obligation is discharged, cancelled,
and on expiry.

• Offsetting Financial instruments:

Financial Assets and Financial Liabilities are offset and the net amount I included in the Balance Sheet where
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realize the asset and settle the liability simultaneously.

13.07 REVENUE RECOGNITION

Interest income is accounted for on a time proportion basis taking into account the amount outstanding and the
applicable interest rate.

Other Incomes are accounted for on confirmation provided by the constituents.

13.08 LEASES

Leases are recognised as financial leases whenever the terms of the lease transfer substantially al! the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.

Company as Lessee: Assets used under finance lease are recognised as property, plant, and equipment in the
Balance Sheet for an amount that corresponds to the lower of fair value and the present value of minimum lease
payments determined at the inception of thelease and a liability is recognised for an equivalent amount.

The minimum lease payments are apportioned between finance charges and the reduction of the lease liability so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the
Statement of Profit and Loss.

13.09 EMPLOYEE BENEFITS

Short-term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit
and Loss of the year in which the related service has been rendered.

Contributions to Provident Fund & other Funds including under the provisions of the Employees’ Provident Fund and
Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.

Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31,2010, However,
during the previous year as well as in the current year no Actuarial Valuation was considered necessary in view of the
resignation of most of the employees.

Provision for Gratuity is not made in accounts and is accounted for as and when paid.

13.10 TAXES ON INCOME

Taxes on income comprise (a) Current Tax and (b) Deferred Tax,

Current Tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income
for the period using tax rates and tax laws enacted during the period, together with any adjustment of tax payable in
respect of previous years.

Deferred Tax is recognised on account of temporary differences between the carrying amounts of assets and liabilities
and the amount used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted
by the end of the reporting period.

Deferred tax assets are recognised for future tax consequences to the extent it is probable that future taxable profits
will be available against which the deductible temporary difference can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when deferred tax balances are related to the same taxation authority. Current tax assets and liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.

13.11 CLAIMS

Claims against the Company not acknowledged as debt are disclosed after a careful evaluation of facts and legal
aspects of the matter involved.

The Company has ongoing litigations with various regulatory authorities. Where an outflow of funds is believed to be
probable and a reliable estimate of the outcome of the dispute can be made based on the Management’s assessment
of the specific circumstances of each dispute and relevant external advice, Management provides for its best estimate
of the liability. Such accruals are by nature complex and can take a number of years to resolve and can involve
estimation uncertainty. Information about such litigations is provided in the Note to the Financial Statements.

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

b) The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

2. USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operation during the reporting period. Although these estimates are based upon managements'' best knowledge of current events and actions, actual results could differ from these estimates.

3. FIXED ASSETS AND DEPRECIATION

a) Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

b) Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from April 01, 2006 in accordance with Schedule XIV of the Companies Act 1956.

c) Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

d) An impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

4. REVENUE RECOGNITION

a) Interest income is accounted on time proportion basis taking in to account the amount outstanding and applicable interest rate.

b) Other Incomes are accounted for on confirmation provided by the constituents.

5. EMPLOYEE BENEFITS

a) Short - term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered.

b) Contributions to Provident Fund & other Funds including under the provisions of the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.

c) Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31, 2010. However, during the previous year as well as in current year no Actuarial Valuation was considered necessary in view of resignation of most of the employees.

d) Provision for Gratuity is not made in accounts and is accounted for as and when paid.

6. BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalised up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to the Statement of Profit and Loss.

7. TAXATION

a) Tax liability is estimated considering the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax asset is recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. There is no Deferred Tax Liability / Asset at the year end.

8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

9. PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS & CHANGES IN ACCOUNTING POLICIES

Prior period items, Extra-ordinary items, Exceptional items and Changes in Accounting Policies having material impact, if any, on the financial affairs of the company are disclosed, wherever applicable.

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Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

b) The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

1.2 USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operation during the reporting period. Although these estimates are based upon managements'' best knowledge of current events and actions, actual results could differ from these estimates.

1.3 FIXED ASSETS AND DEPRECIATION

a) Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

b) Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from April 01, 2006 in accordance with Schedule XIV of the Companies Act 1956.

c) Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

d) An impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

1.4 REVENUE RECOGNITION

a) Interest income is accounted on time proportion basis taking in to account the amount outstanding and applicable interest rate.

b) Other Incomes are accounted for on confirmation provided by the constituents.

1.5 EMPLOYEE BENEFITS

a) Short - term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered.

b) Contributions to Provident Fund & other Funds including under the provisions of the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.

c) Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31, 2010. However, during the previous year as well as in current year no Actuarial Valuation was considered necessary in view of resignation of most of the employees.

d) Provision for Gratuity is not made in accounts and is accounted for as and when paid.

1.6 BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalised up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to the Statement of Profit and Loss.

1.7 TAXATION

a) Tax liability is estimated considering the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax asset is recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. There is no Deferred Tax Liability / Asset at the year end.

1.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

1.9 PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS & CHANGES IN ACCOUNTING POLICIES

Prior period items, Extra-ordinary items, Exceptional items and Changes in Accounting Policies having material impact, if any, on the financial affairs of the company are disclosed, wherever applicable.

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Mar 31, 2012

A. Convention

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

B. Basis of Accounting

The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

C. Fixed Assets and Depreciation

Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from 1st April 2006 in accordance with Schedule XIV of the Companies Act 1956.

Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

An Impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

D. Employee Benefits

i) Post Retirement Benefits

a) Provident Fund

The Company makes regular contributions to Provident Fund maintained with the Regional Provident Fund Commissioner. Such contributions are recognized in the Statement of Profit & Loss on accrual basis.

b) Leave Encashment

Leave encashment benefit had been determined on the basis of actuarial valuation upto March 31,2010. However, during the previous year as well as in current year no Acturial Valuation was considered necessary in view of resignation of most of the employees.

ii) Other employee benefits are accounted for on accrual basis.

E. Deferred Taxation

Deferred Tax is recognised using the liability method, at the current rate of taxation, on all timing differences to the extent it is probable that a liability or asset will crystallize. Deferred Tax Assets are recognised subject to consideration of prudence and to the extent of deferred tax liability. These are periodically reviewed to reassess realisation thereof. There is no Deferred Tax Liability/Asset at the year end.

F. Borrowing Cost

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for its intended use. Other borrowing costs are recognized in the Statement of Profit & Loss on accrual basis.

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Mar 31, 2010

A. Convention

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

B. Basis of Accounting

The financial statements have been prepared underthe historical cost convention as modified by revaluation of certain fixed assets.

C. Fixed Assets and Depreciation

Land, Building, Estate & Development and Plant & Machinery as at 31 st March 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from 1 st April 2006 new factory building and plant & machinery at Ooty is provided on Straight Line Method, in accordance with Schedule XIV of the Companies Act 1956, of India.

Profit or Loss on disposal of fixed assets is recognized in the Profit and Loss Account.

An Impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

D. Investments

Long term investments are stated at cost. Provision is made for diminution, other than temporary, in the value of investments, wherever applicable.

E. Inventories

Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined on FIFO basis, except for manufactured tea, which is valued at weighted average method and comprises of expenditure incurred in the normal course of business in bringing such inventories to their location and condition including appropriate overheads, wherever applicable.

F. Foreign Currency Transactions

Transactions in foreign currency are recorded in rupee at the exchange rate prevailing at the date of transactions. Gains/Losses arising out of fluctuations in the exchange rates are recognised in Profit & Loss Account in the period in which they arise. Premium or discounts on forward contracts are amortized over the , life of the contract. Foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference between the spot rate at the date of the contract and the spot rate on the balance sheet -».. * date is recognized as gain/loss in the Profit & Loss Account.

G. Sales and Services

Sales and services represent the invoiced value of goods sold or services rendered in accordance with the terms of the contract, net of taxes and duties.

H. Grants and Subsidy

Grants/Subsidy, for acquiring specific fixed assets are deducted from the cost of the asset concerned otherwise it is recognized as income in Profit & Loss A/c .

I. Employee Benefits

i) Post Retirement Benefits

a) Provident Fund

The Company makes regular contributions to Provident Fund maintained with the Regional Provident Fund Commissioner. Such contributions are recognized in the Profit & Loss Account on accrual basis.

b) Superannuation Fund

The company operates a non-contributory Superannuation Scheme with Life Insurance Corporation of India, towards future payments of pensions for its eligible employees. The company contributes 15% of the employees current salary to the above fund which is recognised in the profit and loss.

c) Gratuity

The Company has Gratuity Fund administered by trustees which is independent of the Companys Finance. The Gratuity Fund has taken a Group Gratuity Policy which is maintained with Life Insurance Corporation of India (LIC) for future payment of gratuity liability to its employees. Consequent to the adoption of Accounting Standard 15 ( Revised) on "Employee "¦*"- Benefits", gratuity liability as on 31 st March 2010 has been determined on the basis of actuarial valuation in accordance with the method stated in the said standard and such liability has been provided for in the accounts. Annual premium determined by LIC has been contributed.

d) Leave Encashment

Leave encashment benefit has been determined on the basis of actuarial valuation as at 31st March of each year and such liability is provided for in the accounts. In the current year, consequent to the adoption of AS-15 (Revised), such actuarial valuation has been done based on the method prescribed in the said standard.

Actuarial gains and losses, wherever applicable, are recognized in the Income & Expenditure Account.

ii) Other employee benefits are accounted for on accrual basis.

J. Deferred Taxation

Deferred Tax is recognised using the liability method, at the current rate of taxation, on all timing differences to the extent it is probable that a liability or asset will crystallize. Deferred Tax Assets are recognised subject to consideration of prudence and to the extent of deferred tax liability. These are periodically reviewed to reassess realisation thereof.

K. Miscellaneous Expenditure

Prelirhinary and preoperative expenses are being amortized over a period of ten years.

Public issue and amalgamation expenses are being amortized over a period of five years.

L. Borrowing Cost

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for its intended use. Other borrowing costs are charged to Profit & loss Account.

M. Financial Instruments

In respect of Forward Contracts, premium paid provision for losses on restatement and gains/ losses on settlement are recognised along with the underlying transactions and charged to Profit and Loss Account. The company follows the principles of prudence and assesses the losses, if any, by marking to market all its forward contracts taken to cover their foreign exchange risk in respect of future receivables by way of firm commitments and highly probable forecast transactions outstanding at the balance sheet date and provide for such losses.