Accounting Policies of Oxford Industries Ltd. Company

Mar 31, 2024

1. Basic Of preparation of Financial Statement

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical
cost convention, on accrual basis, the provisions of Companies Act, 2013 (''the Act'') (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under section 133
of the Act read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment,
rules issued thereafter. All amounts disclosed in the financial statements and notes have been rounded off to the
nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

2. Significant Accounting judgments, estimates and assumptions.

The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities as at the Balance Sheet date.

Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods. Any revisions to the accounting estimates are
recognized prospectively when revised, in current and future periods.

3. Current versus non-current classification

The classification of an asset/liability either current or non-current has been made applying the criteria of realization/
payment of such assets/liability within a period of 12 months after the reporting date. The Company classifies all
other assets / liabilities as non-current.

4. Revenue and Cost 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, regardless of when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment. Amounts disclosed as revenue are inclusive of excise duty and net of returns, rebates,
Value added taxes / GST and amounts collected on behalf of third parties.

5. Prior Period Items, Non-recurring & Extra-ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed
separately.

6. Property, Plant & Equipment

All items of property, plant and equipment are initially recorded at cost, net of recoverable taxes and discounts.

The cost includes the cost of replacing part of the property, plant and equipment meeting the recognition criteria and
borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying property,
plant and equipment upto the date of commissioning of the assets.

Subsequent to initial recognition, property, plant and equipment are measured at cost less accumulated depreciation
and any accumulated impairment losses. The carrying values of property, plant and equipment are reviewed for
impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Depreciation

Depreciation on Tangible assets is provided on Straight-line basis over the useful lives prescribed in Schedule II to
Companies Act, 2013.

Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. A maximum
residual value of 5% is considered for all assets.

7. Inventories

Raw material and consumable stores are valued at cost or net realisable value whichever is lower. Cost comprises of
purchase price, freight, taxes & duties reduced to the extent of value of GST Input Tax credit set off if any. Finished
goods and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate
production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost
(which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

8. Employee Benefits

a. Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised
fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution
to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

All employee benefits payable within twelve months of rendering the service are classified as short term employee
benefits and they are recognized in the period in which the employee renders the related service. The Company
recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services
rendered as a liability (accrued expense) after deducting any amount already paid.

9. Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss
account in the year of expenditure.

10. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.

11. Leases

The Company assesses whether a contract contains a lease, at the inception of the contract. A Contract is or contains
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether (i) the contract involves the use of identified asset; (ii) the Company has substantially all of economic
benefits from the use of asset through a period of lease and (iii) the Company has the right to direct the use of the asset.

The company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease
term of 12 months or less. The company recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.

There are no leases/assets falling within the definition of right to control the use.

12. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the Statement
of profit and loss.

13. Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with a
maturity of three months or less, highly liquid investments that are readily convertible into known amounts of cash
which are subject to an insignificant risk of changes in value.

14. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated based
on the available information.

15. Provision for Taxation

Provision for current Income Tax is made for the tax payable on the taxable income after considering tax allowances,
deductions and exemptions determined in accordance with the prevailing income tax laws.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet
and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax
assets are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to
the extent that it is probable that future taxable profits will be available against which those deductible temporary
differences, carry forward tax losses and allowances can be utilised. Deferred tax assets and liabilities are measured
at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net.

16. Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of
transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates
of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end,
restatement of monetary items are recognised in the Profit & Loss Account.

17. Earnings Per Share

Basic earnings per share is calculated by dividing net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

Upon discontinuation of an operation the basic and diluted amount per share for the discontinued operation is
separately reported, as applicable.

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Mar 31, 2014

I Basic Of preparation of Financial Statement

a. The financial statements are prepared under the historical cost convention, on a going concern basis and in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act 1956 ("the 1956 Act") [which continues to be applicable in respect of section 133 of the Companies Act''2013("the 2013 Act") in terms of general circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs] and the relevant provision of the 1956 Act/2013 Act as applicable.

b. The company generally follows mercantile system of accounting and recognizes significant item of income and expenditure on accrual basis.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances where in conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and no depreciation is provided in the year of disposal. Assets costing Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company''s asset the carrying amounts of the Company''s assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a. Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

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Mar 31, 2012

I Basic Of preparation of Financial Statement

a. The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

b. The company generally follows mercantile system of accounting and recognizes signifiacant item of income and expenditure on accrual basis.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and no depreciation is provided in the year of disposal. Assets costing Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company's asset the carrying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision forthe value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

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Mar 31, 2011

I Basic Assumptions:

The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

ii Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/ impairment/ depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and in the year of disposal. Assets costing Rs.5, 000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company's asset the carrying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

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Mar 31, 2010

I Basic Assumptions:

The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are ! disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/ impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and in the year of disposal. Assets costing Rs.5, 000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Companys asset the carrying amounts of the Companys assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent

nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower. vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower: Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the reporting period of expenditure.

x Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the reporting period are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the reporting period.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India/the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be-confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.