Accounting Policies of Shree Metalloys Ltd. Company

Mar 31, 2024

(a) Foreign Currency

Transactions in foreign currencies are translated into the functional currency of the Company at
exchange rates at the date of transactions or an average rate if the average rate approximates the actual
rate at the date of transaction.

(b) Financial instruments

1. Financial Assets:

i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those measured at ‘Amortized cost’ and

• Those to be measured subsequently at either ‘Fair value through other comprehensive
income’ (FVTOCI) or ‘Fair value through profit or loss’ (FVTPL).

The classification depends on the Company’s business model for managing the financial
assets and the contractual terms of the cash flows.

• A financial asset is measured at amortized cost if it meets both following conditions and is
not designated as at FVTPL:

-the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

- the contractual terms of a financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

• A debt investment is measured at FVOCI if it meets both following conditions and is not
designated as at FVTPL:

-the asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and

-the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

• Financial assets are not reclassified after their initial recognition except if and in the period
the Company changes its business model for managing financial assets.

ii) Measurement

At initial recognition, the company measures a financial asset when it becomes a party to the
contractual provisions of the instruments and measures at its fair value except trade
receivables which are initially measured at transaction price. Transaction costs are
incremental costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in
profit or loss. A regular way purchase and sale of financial assets are accounted for at trade
date.

iv) Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or it transfers the rights to receive the contractual cash flows in a
transaction in which substantially all the risks and rewards of ownership of the financial asset
is transferred or in which the Company neither transfers nor retains substantially all the risks
and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance
sheet, but retains either all or substantially all the risks and rewards of the transferred assets,
the transferred assets are not derecognized.

2. Financial liabilities:

i) Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense, are recognized in profit or loss.
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method. Interest expense and foreign exchange gains and losses are recognized in profit or loss.
Any gain or loss on derecognition is also recognized in profit or loss.

ii) Derecognition

The Company derecognizes a financial liability when its contractual obligations are discharged
or cancelled or expired.

The Company also derecognizes a financial liability when its terms are modified and the cash
flows under the modified terms are substantially different. In this case, a new financial liability
based on the modified terms is recognized at fair value. The difference between the carrying
amount of the financial liability extinguished and the new financial liability with modified terms
is recognized in the profit or loss.

3. Offsetting

Financial assets and financial liabilities are off set and the net amount presented in the balance
sheet when, and only when, the Company currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to realize the asset and settle the
liability simultaneously.

(c) Property, Plant and Equipment

1. Recognition and Measurement

Items of property, plant and equipment are measured at cost, which includes capitalized
borrowing costs, less accumulated depreciation, and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the site on which it is
located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of
materials and direct labour, any other costs directly attributable to bringing the item to working
condition for its intended use, and estimated costs of dismantling and removing the item and
restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then
they are accounted for as separate items (major components) of property, plant and equipment.
Useful lives have been determined in accordance with Schedule II to the companies act, 2013.
The residual values are not more than 5% of the original cost of the asset.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit
or loss.

2. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company.

3. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated
residual values over their estimated useful lives using the straight-line method, and is generally
recognized in the statement of profit and loss.

Depreciation method, useful lives and residual values are reviewed at each financial year-end
and adjusted if appropriate. Based on technical evaluation and consequent advice, the
management believes that its estimates of useful lives as given above best represent the period
over which management expects to use these assets.

Depreciation on additions / disposals is provided on a pro-rata basis i.e. from /upto the date on
which asset is ready for use / disposed off.

4. Derecognition

An item of Property, Plant and Equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of assets.

(d) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories includes
expenditure incurred in acquiring the inventories, production or conversion costs and other costs
incurred in bringing them to their present location and condition. In the case of manufactured
inventories and work-in-progress, cost includes an appropriate share of fixed production overheads
based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.

The net realizable value of work-in-progress is determined with reference to the selling prices of
related finished products.

Raw materials, components and other supplies held for use in the production of finished products are
not written down below cost except in cases where material prices have declined and it is estimated
that the cost of the finished products will exceed their net realizable value.

Related items or items of the similar nature are grouped for comparison of cost and net realizable
value.

(e) Impairment of assets

1. Impairment of financial assets

The Company recognizes loss allowances for financial assets measured at amortized cost using
expected credit loss model.

At each reporting date, the Company assesses whether financial assets carried at amortized cost is
credit- impaired. A financial asset is ''credit- impaired'' when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset, have occurred.

For trade receivables, the Company always measures the loss allowance at an amount equal to
lifetime expected credit losses.

For all other financial assets, the Company measures loss allowances at an amount equal to twelve
months expected credit losses unless there has been a significant increase in credit risk from initial
recognition in which those are measured at lifetime expected credit risk.

Lifetime expected credit losses are the expected credit losses that result from all possible default
events over the expected life of a financial asset. Twelve months expected credit losses are the
portion of lifetime expected credit losses that represent the expected credit losses that result from
default events on a financial instmment that are possible within the twelve months after the
reporting date (or a shorter period if the expected life of the instrument is less than twelve
months)

When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating expected credit losses, the Company considers reasonable
and supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis, based on the Company’s
historical experience and informed credit assessment and including forward-looking information.

The Company considers a financial asset to be in default when the borrower is unlikely to pay its
credit obligations to the Company in full.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are
measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due
to the Company in accordance with the contract and the cash flows that the Company expects to
receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for financial assets measured at amortized cost are deducted from the gross
carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. This is generally the case when the Company
determines that the debtor does not have assets or sources of income that could generate sufficient
cash flows to repay the amounts subject to the write- off. However, financial assets that are
written off could still be subject to enforcement activities in order to comply with the Company''s
procedures for recovery of amounts due.

2. Impairment of non-flnancial assets

The Company''s non-fmancial assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, then the asset''s recoverable
amount is estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated
recoverable amount. Impairment losses are recognized in the statement of profit and loss.

In respect of assets for which impairment loss has been recognized in prior periods, the Company
reviews at each reporting date whether there is any indication that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. Such a reversal is made only to the extent that the asset''s
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.

(f) Employee benefits

1. Short term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided.

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Mar 31, 2015

A) Basis of Preparation of Financial Statements

These financial statement have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis.

b) Revenue Recognition

Sale of goods is recognized on dispatch of goods to customers and is recorded net of trade discounts, rebates, sales tax/ value added tax however inclusive of excise duty, which is shown as separately.

c) Fixed Assets

Fixed assets are stated at their cost of acquisition/installation less accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on Capital Goods.

Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

d) Depreciation and Amortization

Depreciation is provided on the straight line method over the useful lives of the assets as prescribed in Schedule II to the Companies Act, 2013 and preliminary expenses are written off over a period of five years. Due to changes in Companies Act, Depreciation is to be provided based on useful lives of assets, Company has changed the method of calculation of Depreciation from Written Down Method to Straight Line Method of Depreciation for the remaining useful life.

e) Investment

Investment has been shown at cost.

f) Inventories

Items of inventories are measured at lower of cost or net realizable value whichever is lower on FIFO basis for Raw Materials. Finished Goods and work in process are valued at the lower of the cost and net realizable value.

g) Employees Benefits

Employee benefits are charged off in the year in which the employees have rendered services. Provision for leave encashment is determined yearly basis and accordingly paid.

h) Taxation

- Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

- Deferred tax resulting from "timing differences" between the accounting and taxable profit for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

- Minimum Alternative Tax (MAT) credit is recognized as an asset only to the extent there is convincing evidence that the Company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961.

i) Contingent Liability

Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes.

j) Foreign Currency Transaction

Foreign transactions are recorded at the rates on which they have been settled during the year. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at year-end and overall net gain/loss is adjusted in the Profit and Loss Account.

k) Impairment of Assets

Fixed assets are reviewed for impairment losses, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assts exceeds its recoverable amount, which is the higher of an assets, net selling price and value in use.

l) Borrowing Costs

Borrowing costs comprising interest, finance charges etc to the extent related/ attributed to the qualifying assets, such as new projects and / or specific assets created in the existing business, are capitalized up to the date of completion and ready for their intended use. Other borrowing costs are charged to the statement of Profit and Loss in the period of their accrual.

m) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity share outstanding during the year are adjusted for events such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding without a corresponding change in resource.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand and deposits with banks.

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Mar 31, 2014

A) Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention method in accordance with the generally accepted accounting principles and in accordance with the provisions of the Companies (Accounting Standards) Rules, 2006 by the Central Government. The Company follows mercantile system of accounting.

b) Revenue Recognition

Sale of goods is recognized on dispatch of goods to customers and is recorded net of trade discounts, rebates, sales tax/ value added tax however inclusive of excise duty, which is shown as separately.

c) Fixed Assets

Fixed assets are stated at their cost of acquisition/installation less accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on Capital Goods.

d) Depreciation and Amortization

Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in Schedule XIV to the Companies Act, 1956, and preliminary expenses are written off over a period of five years.

e) Investment

Investment has been shown at cost.

f) Inventories

Items of inventories are measured at lower of cost or net realizable value whichever is lower on FIFO basis for Raw Materials. Finished Goods and work in process are valued at the lower of the cost and net realizable value.

g) Employees Benefits

Employee benefits are charged off in the year in which the employees have rendered services. Provision for leave encashment is determined yearly basis and accordingly paid.

h) Taxation

- Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

- Deferred tax resulting from "timing differences" between the accounting and taxable profit for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

- Minimum Alternative Tax (MAT) credit is recognized as an asset only to the extent there is convincing evidence that the Company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961.

i) Contingent Liability

Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes.

j) Foreign Currency Transaction

Foreign transactions are recorded at the rates on which they have been settled during the year. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at year-end and overall net gain/loss is adjusted in the Profit and Loss Account.

k) Impairment of Assets

Fixed assets are reviewed for impairment losses, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assts exceeds its recoverable amount, which is the higher of an assets, net selling price and value in use.

l) Borrowing Costs

Borrowing costs comprising interest, finance charges etc to the extent related/ attributed to the qualifying assets, such as new projects and / or specific assets created in the existing business, are capitalized up to the date of completion and ready for their intended use. Other borrowing costs are charged to the statement of Profit and Loss in the period of their accrual.

m) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity share outstanding during the year are adjusted for events such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding without a corresponding change in resource.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.

Amount of cash credit facility availed Rs. 58,458,595 (31st March 2013 Rs. 47,408,719) from banks :

1. Punjab National Bank A/C 0224008700005680 - Rs. 58,458,595 (31st March 2013 Rs. 47,408,719) are secured by way of Hypothecation of Stock and Book Debts and Equitable Mortgage of immovable properties of Guarantors.

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Mar 31, 2013

A) Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention method in accordance with the generally accepted accounting principles and in accordance with the provisions of the Companies (Accounting Standards) Rules, 2006 by the Central Government. The Company follows mercantile system of accounting.

b) Revenue Recognition

Sale of goods is recognized on dispatch of goods to customers and is recorded net of trade discounts, rebates, sales tax/ value added tax however inclusive of excise duty, which is shown as separately.

c) Fixed Assets

Fixed assets are stated at their cost of acquisition/installation less accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on Capital Goods.

d) Depreciation and Amortization

Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in Schedule XIV to the Companies Act, 1956, and preliminary expenses are written off over a period of five years.

e) Investment

Investment has been shown at cost.

f) Inventories

Items of inventories are measured at lower of cost or net realizable value whichever is lower on FIFO basis for Raw Materials. Finished Goods and work in process are valued at the lower of the cost and net realizable value.

g) Employees Benefits

Employee benefits are charged off in the year in which the employees have rendered services. Provision for leave encashment is determined yearly basis and accordingly paid.

h) Taxation

- Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

- Deferred tax resulting from "timing differences" between the accounting and taxable profit for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

- Minimum Alternative Tax (MAT) credit is recognized as an asset only to the extent there is convincing evidence that the Company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961.

i) Contingent Liability

Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes.

j) Foreign Currency Transaction

Foreign transactions are recorded at the rates on which they have been settled during the year. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at year-end and overall net gain/loss is adjusted in the Profit and Loss Account.

k) Impairment of Assets

Fixed assets are reviewed for impairment losses, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assts exceeds its recoverable amount, which is the higher of an assets, net selling price and value in use.

l) Borrowing Costs

Borrowing costs comprising interest, finance charges etc to the extent related/ attributed to the qualifying assets, such as new projects and / or specific assets created in the existing business, are capitalized up to the date of completion and ready for their intended use. Other borrowing costs are charged to the statement of Profit and Loss in the period of their accrual.

m) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity share outstanding during the year are adjusted for events such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding without a corresponding change in resource.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.

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Mar 31, 2012

(A) Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention method in accordance with the generally accepted accounting principles and in accordance with the provisions of the Companies (Accounting Standards) Rules, 2006 by the Central Government. The Company follows mercantile system of accounting.

(B) Revenue Recognition

Sales are recognized upon delivery of goods and are recorded net of trade discounts, rebates, sales tax/ value added tax and excise duty.

(C) Fixed Assets and Depreciation

Fixed Assets are stated at their cost of acquisition net of cenvat/ value added tax, less accumulated depreciation.

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(D) Investment

Investment in shares of companies, quoted and unquoted, are stated at cost.

(E) Inventories

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

(F) Retirement Benefits

Provision in accounts for any retirement benefit is based on actuarial valuation, if applicable any.

(G) Earning per Share

The basic earning per share is computed by dividing the net profit attributed to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The company has no potential dilutive equity shares outstanding during the year.

(H) Taxation

Provision for Current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between the accounting and taxable profit for the period is accounted for using the tax rates and laws that have been enacted or substantively enacted as at the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(I) Contingent Liability

Disclosures for contingent liabilities are considered to the extent of estimates/notices/ demands received by the Company

(J) Foreign Currency Transaction

Foreign currency transactions are recorded at the rates on which they have been settled during the year. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at year-end and overall net gainloss is adjusted in the Profit and Loss Account.

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Mar 31, 2010

(A) Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention method in accordance with the generally accepted accounting principles and in accordance with the provisions of the Companies (Accounting Standards) Rules, 2006 by the Central Government. The Company follows mercantile system of accounting.

(B) Revenue Recognition

Sales are recognized upon delivery of goods and are recorded net of trade discounts, rebates, sales tax/ value added tax and excise duty.

(C) Fixed Assets and Depreciation

Fixed assets are stated at their cost of acquisition net of cenvat/ value added tax, less accumulated depreciation. Company has started its production, hence capital work in progress has been capitalized on 24.03.2010 and depreciation has been claimed accordingly.

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(D) Investment

Investment in shares of companies, quoted and unquoted, are stated at cost.

(E) Inventories

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

(F) Retirement Benefits

Provision in accounts for any retirement benefit is based on actuarial valuation, if applicable any.

(G) Earning per Share

The basic earning per share is computed by dividing the net profit attributed to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The company has no potential dilutive equity shares outstanding during the year.

(H) Taxation

Provision for Current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between the accounting and taxable profit for the period is accounted for using the tax rates and laws that have been enacted or substantively enacted as at the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(I) Contingent Liability

Disclosures for contingent liabilities are considered to the extent of estimates/notices/ demands received by the Company

(J) Foreign Currency Transaction

Foreign currency transactions are recorded at the rates on which they have been settled during the year. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at year-end and overall net gain/loss is adjusted in the Profit and Loss Account.