Accounting Policies of Sinnar Bidi Udyog Ltd. Company

Mar 31, 2024

1) Statement of Compliance

In accordance with the notification issued by the Ministry of Corporate Affairs, the
Company has adopted Indian Accounting Standards (referred to as "IND AS")
notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect
from April 1, 2016.

These financial statements have been prepared in accordance with IND AS notified
under the Companies (Indian Accounting Standards) Rules, 2015 read with Section
133 of the Companies Act, 2013.

2) Use of Estimates

The preparation and presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and liabilities on
the date of financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual result and estimates are
recognized in the period in which the results are known / materialized.

3) Revenue Recognition

Revenue from the sale of products is recognized on transfer of all significant risks
and rewards of ownership to the buyer which coincides with dispatch of products to
customers. Interest income is recognized on a time proportion basis. Dividend
income from investment is accounted for when the right to receive is established.

4) Property Plant and Equipment

Items of property, plant, & equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Cost is inclusive of freight,
duties, taxes or levies (net of recoverable taxes) and any directly attributable cost of
bringing the assets to their working condition for intended use.

Property, plant and equipment which are not ready for intended use as on the date
of Balance Sheet are disclosed as " Capital work-in-progress".

Profit or Loss on disposal / scrapping / write off / retirement from active use of an
item of property, plant and equipment is recognized in the statement of profit and
loss.

Depreciation / Amortization

The company has assessed the useful lives of fixed assets as per Schedule II to the
Companies Act, 2013. Accordingly, depreciation has been computed on useful lives
based on technical evaluation of relevant class of assets including components
thereof. Useful lives and residual values are reviewed annually. Depreciation is
provided as per the written down value method computed basis useful lives of fixed
assets as follows:

Buildings : 60 years

Plant & Machinery : 10 years

Office Equipments : 5 years

Furniture and fixtures : 10 years

Vehicles : 10 years

Information technology equipment : 3 years

Freehold land is not depreciated, Leasehold land and related improvements are
amortized over the period of the lease.

5) Financial Instruments

Financial assets and liabilities are recognized when the Company becomes a party to
the contractual provisions of the instruments. Financial assets and liabilities are
initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value measured on initial recognition of financial asset or
financial liability.

Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily
convertible into known amounts of cash that are subject to an insignificant risk of
change in value and having original maturities of three months or less from the date
of purchase, to be cash equivalents. Cash and cash equivalents consist of balances
with banks and liquid - debt mutual funds which are unrestricted for withdrawal
and usage.

Financial Assets at Amortized Cost

Financial assets are subsequently measured at amortized cost if these financial assets
are held within a business whose objective is to hold these assets to collect
contractual cash flows and the contractual terms of the financial assets give rise on
specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if
these financial assets are held within a business whose objective is achieved by both
collecting contractual cash flows on specified dates that are solely payments of
principal and interest on the principal amount outstanding and selling financial
assets.

The Company has made an irrevocable election to present in other comprehensive
income subsequent changes in the fair value of equity investments not held for
trading.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is
measured at amortized cost or at fair value through other comprehensive income on
initial recognition. The transaction costs directly attributable to the acquisition of
financial assets and liabilities at fair value through profit or loss are immediately
recognized in profit or loss.

Financial Liabilities

Financial liabilities are measured at amortized cost using the effective interest
method.

Equity Instruments

An equity instrument is a contract that evidences residual interest in the assets of the
company after deducting all of its liabilities. Equity instruments recognized by the
Company are recognized at the proceeds received net off direct issue cost.

Investment in associates

Investment in associates is measured at cost less impairment.

6) Inventories

a) Raw materials, packing material and consumables are carried at a lower cost and
net realizable value. Cost is determined on a weighted average basis. Purchased
goods-in-transit are carried at cost. Work-in-progress is carried out at a lower cost
and net realizable value. Stores and spare parts are carried at lower cost and net
realizable value. Finished goods produced or purchased by the Company are carried
at a lower cost and net realizable value. Cost included direct material and labour cost
and proportion of manufacturing overheads.

b) Book Debts, Advances & Deposits

Balances considered irrecoverable are written off and those considered doubtful are
provided for.

7) Employee / Retirement Benefits

The company makes contributions to the Provident Fund, Employee State Insurance,
National Pension System etc. for eligible employees and these contributions are
charged to statement of profit and loss on an accrual basis.

Retirement benefit in the form of Gratuity, is considered as defined benefit obligation.
The company has established an irrevocable trust to administer gratuity. The Trust
has taken a policy under the Group Gratuity-cum-Life Insurance Scheme from LIC
of India covering all the eligible employees. The company makes payment of annual
premium and contribution to the trust as demanded by LIC of India. Payment made
to Trust is charged to the Statement of Profit and Loss for the year.

Leave Encashment is accounted for on the basis of Actuarial Valuation.

8) Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are
converted, at exchange rates prevailing on that date. Exchange differences are recognized
in the Statement of Profit & Loss.

9) Borrowing Cost

Borrowing costs directly attributable to acquisition or construction of items of
property, plant and equipment which take a substantial period of time to get ready
for their intended use are capitalized as part of the cost of that asset. All other
borrowing costs are charged to the statement of profit and loss in the period in
which they are incurred.

10) Leases

Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards incidental to ownership of the asset to the
lessee. All other leases are classified as operating leases.

Payments made under operating leases are recognized as an expense in the
statement of profit and loss on a written down value basis over the term of the lease
unless such payments are structured to increase in line with expected general
inflation to compensate for the lessor''s expected inflationary cost increases, in which
case the same is recognized as an expense in line with the contractual term.

11) Income Tax

Income tax expenses comprises of current tax and deferred tax. Income tax expense
is recognized in the statement of profit and loss, except when it is related to items
recognized in the other comprehensive income or items recognized directly in the
equity. In such cases, the income tax expense is also recognized in the other
comprehensive income or directly in the equity as applicable.

Deferred taxes are recognized basis the balance sheet approach on temporary
differences, being the difference between the carrying amount of assets and liabilities
in the balance Sheet and its corresponding tax base, that originate in one period and

are capable of reversal in one or more subsequent periods. Deferred tax assets are
recognized only to the extent it is probable that future taxable profits will be
available against which such assets can be utilized.

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Mar 31, 2015

A Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956 Accounts are kept on accrual basis and according to the double entry system.

B Revenue Recognition

Revenue from the sale of products is recognised on transfer of all significant risks and rewards of ownership to the buyer which coincides with despatch of products to customers. Interest income is recognised on time proportion basis. Dividend income on investment is accounted for when received.

C Use of Estimates

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

D Fixed Assets and Depreciation

i Fixed Assets are stated at cost less depreciation , cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets.

ii Depreciation is charged over the estimated useful life of the fixed assets as prescribed in Schedule II of the Companies Act,2013.

E Investments

Long Term Investments are stated at cost less permanent diminution in value, if any.

F Current Assets

a Stocks

Raw Material, Traded Items and Finished Goods are valued at lower of cost or net realisable value. Cost of finished goods includes cost of material and cost of conversion. Cost is determined on monthly weighted average basis, b Book Debts, Advances & Deposits

Balances considered irrecoverable are written- off and those considered doubtful are provided for.

G Employee / Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund.

The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into account the sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year.

Liability arising on account of accrued leave salary payable is provided in the accounts. The same is worked out on the basis of the amount that would have been payable as leave encashment to all the eligible employees on the last day of the financial year. (Refer Note 27 (2))

H Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date. Exchange differences are recognised in the Statement of Profit & Loss.

I Borrowing Costs.

Borrowing costs directly attributable to acquisition or construction of fixed assets which take substantial period of time to get ready for their intended use are treated as capital expenditure in accrodance with Accounting Standard 16 on "Borrowing Costs".

Other borrowing cost are charged to the statement of profit and loss.

J Leases.

Lease rentals for operating leases are charged to statement of profit and loss on accrual basis in accordance with the respective lease agreement.

K Taxation

a Current Year Charges

Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income Tax Act 1961.

b Deferred Tax

The Deferred Tax resulting from timing difference between the book and taxable profit for the year is accounted for,using the tax rates and laws that have been substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing difference are recognised to the extent there is reasonable certainty that these would be realised in future.

L Contingent Liabilities and Provisions.

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved, in line with the provisions of Accounting Standard (AS) 29. Provisions are recognised when the company has present obligation (legal/constructive) and on management judgement as a result of past event, for which it is probable that a cash outflow may be required and realiable estimate can be made of the amount of the obligation.

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be accrued / realised.

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Mar 31, 2014

A Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956.

Accounts are kept on accrual basis and according to the double entry system.

B Revenue Recognition

Revenue from the sale of products is recognised on transfer of all significant risks and rewards of ownership to the buyer which coincides with despatch of products to customers.

Interest income is recognised on time proportion basis. Dividend income on investment is accounted for when received.

C Use of Estimates

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

D Fixed Assets

i Fixed Assets are stated at cost less depreciation , cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets .

ii Depreciation is provided on Written Down Value Method and at the rate and in the manner specified in Schedule XIV of the Companies Act 1956.

E Investments

Long Term Investments are stated at cost less permanent diminution in value, if any.

F Current Assets

a Stocks

Raw Material , Traded Items and Finished Goods are valued at lower of cost or net realisable value. Cost of finished goods includes cost of material and cost of conversion. Cost is determined on monthly weighted average basis.

b Book Debts, Advances & Deposits

Balances considered irrecoverable are written- off and those considered doubtful are provided for.

G Employee / Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund.

The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into account the sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year.

Liability arising on account of accrued leave salary payable is provided in the accounts.The same is worked out on the basis of the amount that would have been payable as leave encashment to all the eligible employees on the last day of the financial year. (Refer Note 27 (2))

H Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date. Exchange differences are recognised in the Statement of Profit & Loss.

I Borrowing Costs.

Borrowing costs directly attributable to acquisition or construction of fixed assets which take substantial period of time to get ready for their intended use are treated as capital expenditure in accrodance with Accounting Standard 16 on "Borrowing Costs" .

Other borrowing cost are charged to the statement of profit and loss.

J Leases.

Lease rentals for operating leases are charged to statement of profit and loss on accrual basis in accordance with the respective lease agreement.

K Taxation

a Current Year Charges

Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income Tax Act 1961.

b Deferred Tax

The Deferred Tax resulting from timing difference between the book and taxable profit for the year is accounted for,using the tax rates and laws that have been substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing difference are recognised to the extent there is reasonable certainty that these would be realised in future.

L Contingent Liabilities and Provisions.

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved , in line with the provisions of Accounting Standard (AS) 29.

Provisions are recognised when the company has present obligation (legal/constructive) and on management judgement as a result of past event, for which it is probable that a cash outflow may be required and realiable estimate can be made of the amount of the obligation.

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be accrued / realised.

a. Secured by hypothecation of all current assets of the company both present and future.

b. The above credit facility is further secured by equitable mortgage of the following :- - Land and Building situated on Gat No 473 at Post Mahiravani, Trimbak Road, Nashik owned by the company.

- Residential Flats at Dhumraketav Building, Near Camel House, Dwarka, Nashik owned by the company.

- Plot at Gat No 168/1A (P) along with Building thereon at Survey No 1341 on Mumbai Agra Highway, Nandgaon Tal. Dist. Dhule owned by Shri.K B Sarda.

c. The above credit facility is secured by personal guarantee of Shri K B Sarda.

d. Rate of Interest : 13.25% p.a.

Note:-

In past the company used to manufacture and sell ''Bidis''

The Bidi''s manufactured by the company were sold to Traders / Exporters, who used to export them to various countries. Bidi''s sold to some such Traders / Exporters were exported by them to USA.

As per the prevailing law in USA, the responsibility of depositing the amount in Escrow Deposit Fund (On account of sales of tobacco products in that country) was of the manufacturer of tobacco products.

Accordingly , on the basis of demand raised against the company for non-fulfillment of this requirement - a sum of Rs.201.46 Lacs is provided for in the books of the company upto 31st March 2014. (31st March 2013 - Rs 183.70 Lacs)

During the current year no any fresh demand was made against the company. The current year figure of appearing in Statement of Profit and Loss Rs.17.76 Lacs represents foreign exchange loss on restatement of outstanding liability of escrow fund demand provision already made in earlier years (Previous year : Loss Rs.10.92 Lacs)

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Mar 31, 2013

A Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956

Accounts are kept on accrual basis and according to the double entry system.

Sales are recognized on dispatch of goods to customers.

Dividend Income on Investments is accounted for when received.

B Fixed Assets

i Fixed Assets are stated at cost less depreciation , cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets .

ii Depreciation is provided on Written Down Value Method and at the rate and in the manner specified in Schedule XIV of the Companies Act 1956.

C Investments

Long Term Investments are stated at cost .

D Current Assets a Stocks

Raw Material , Traded Items and Finished Goods are valued at lower of cost or net realizable value. Cost of finished goods includes cost of material and cost of conversion. Cost is determined on monthly weighted average basis.

b Book Debts, Advances & Deposits

Balances considered irrecoverable are written- off and those considered doubtful are provided for.

E Employee / Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund.

The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into account the sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year.

Liability arising on account of accrued leave salary payable is provided in the accounts. The same is worked out on the basis of the amount that would have been payable as leave encashment to all the eligible employees on the last day of the financial year. (Refer Note 28 (2))

F Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date. Exchange differences are recognized in the Statement of Profit & Loss.

G Borrowing Costs.

Borrowing costs directly attributable to acquisition or construction of fixed assets which take substantial period of time to get ready for their intended use are treated as capital expenditure in accordance with Accounting Standard 16 on "Borrowing Costs" .

Other borrowing cost are charged to the statement of profit and loss.

H Leases.

Lease rentals for operating leases are charged to statement of profit and loss on accrual basis in accordance with the respective lease agreement.

I Taxation

a Current Year Charges

Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income Tax Act 1961.

b Deferred Tax

The Deferred Tax resulting from timing difference between the book and taxable profit for the year is accounted for, using the tax rates and laws that have been substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing difference are recognized to the extent there is reasonable certainty that these would be realized in future.

J Contingent Liabilities and Provisions.

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved , in line with the provisions of Accounting Standard (AS) 29.

Provisions are recognized when the company has present obligation (legal/constructive) and on management judgment as a result of past event, for which it is probable that a cash outflow may be required and reliable estimate can be made of the amount of the obligation.

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or at present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be accrued / realized.

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Mar 31, 2012

A Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956 Accounts are kept on accrual basis and according to the double entry system.

Sales are recognized on despatch of goods to customers.

Dividend Income on Investments is accounted for when received.

B Fixed Assets

i Fixed Assets are stated at cost less depreciation , cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets.

ii Depreciation is provided on Written Down Value Method and at the rate and in the manner specified in Schedule XIV of the Companies Act 1956.

C Investments

Long Term Investments are stated at cost. .

D CurrentAssets

a Stocks

Raw Material, Traded Items and Finished Goods are valued at lower of monthly weighted average cost and net realizable value. Cost of finished goods include cost of material, costof conversion, labour, b Book Debts, Advances & Deposits Balances considered irrecoverable are written- off and those considered doubtful are provided for.

E Employee/Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund.

The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into account the sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year.

F Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date. Exchange differences are recognised in the Statement of Profit & Loss.

G Taxation

a Current Year Charges

Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income Tax. b Deferred Tax

The Deferred Tax resulting from timing difference between the book and taxable profit for the year is accounted for, using the tax rates and laws that have been substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing difference are recognised to the extent there is reasonable certainty that these would be realised in future.

H Contingent Liabilities

Contingent Liabilities are disclosed in the accounts by way of note.

"The company has not received any intimation from its suppliers regarding their status under the Micro , Small and Medium Enterprises Development Act, 2006 and hence disclosures , if any, relating to amounts unpaid as at the year end as required under the said Act have not been furnished."

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Mar 31, 2011

A Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956 Accounts are kept on accrual basis and according to the double entry system.

Sales are recognised on despatch of goods to customers.

Dividend Income on Investments is accounted forwhen received.

B Fixed Assets

i Fixed Assets are stated at cost less depreciation , cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets.

ii Depreciation is provided on Written Down Value Method and at the rate and in the manner specified in Schedule XIV of the Companies Act 1956.

C Investments

Long Term Investments are stated at cost.

D CurrentAssets

a. Stocks

Raw Material , Traded Items and Finished Goods are valued at lower of monthly weighted average cost and net realisable value.Cost of finished goods include cost of material,cost of conversion,labour.

b. Book Debts, Advances & Deposits Balances considered irrecoverable are written- off and those considered doubtful are provided for.

E Employee/Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund. The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into account the sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year. Liability arising on account of accrued leave salary payable is provided in the accounts.The same is worked out on the basis of the amount that would have been payable as leave encashment to all the eligible employees on the last day of the financial year.

F Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date.Exchange differences are recognised in the Profit & LossAccount.

G Taxation

a Current Year Charges Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income TaxAct1961. b Deferred Tax The Deferred Tax resulting from timing difference between the book and taxable profit for the year is accounted for, using the tax rates and laws that have been substantially enacted as of the balance sheet date. Deferred tax assets arising from timing difference are recognised to the extent there is reasonable certainty that these would be realised in future.

H Contingent Liabilities

Contingent Liabilities are disclosed in the accounts by way of note.

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Mar 31, 2010

A. Accounting Convention / Method of Accounting.

The Financial Statements are prepared under Historical Cost Convention in accordance with generally accepted accounting principles and provisions of Companies Act 1956

Accounts are kept on accrual basis and according to the double entry system. Sales are recognised on despatch of goods to customers.

Dividend Income on Investments is accounted for when received.

B. Fixed Assets

i Fixed Assets are stated at cost less depreciation, cost being comprised of cost of acquisition and expenditure directly attributable for commissioning of the assets.

ii Depreciation is provided on Written Down Value Method and at the rate and in the manner specified in Schedule XIV of the Companies Act 1956.

C. investments

Long Term Investments are stated at cost.

D. Current Assets

a. Stocks

Raw Material , Traded Items and Finished Goods are valued at lower of monthly weighted average cost and net realisable value. Cost of finished goods include cost of materialist of conversion, labour.

b. Book Debts, Advances & Deposits

Balances considered irrecoverable are written-off and -ose considered doubtful are provided for.

E. Employee / Retirement Benefits

Retirement Benefits to employees are provided for by payments to Gratuity and Provident Fund. The gratuity liability is determined on the basis laid down under Employees Approved Gratuity Fund Scheme which takes into accountthe sum that would have been payable as gratuity to all the eligible employees on the last day of the financial year.Liability arising on account of accrued leave salary payable is provided in the accounts. the same is worked out on the basis of the amount that would have been payable as leave encashment to all the eligible employees on the last day of the financial year.

F. Foreign Currency Transactions

Monetary items denominated in foreign currency as at the Balance Sheet date are converted at exchange rates prevailing on that date.Exchange differences are recognised inthe Profit & Loss Account.

G. Taxation

a. Current Year Charges

Provision for tax is based on the amount of tax payable in respect of taxable income as determined under Income Tax Act 1961.

Fringe Benefit Tax provision is made on the basis of liability for the year as ascertained by the Management underthe provisions of Income Tax Act,1961.

b. Deferred Tax

The Deferred Tax resulting from timing difference between the book and taxable profits for the year is accounted for,usingthe tax rates and laws that have been substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing difference are recognised to the extentthere is reasonable certainty That these would be realised in future.

H. Contingent Liabilities

Contingent Liabilities are disclosed inthe accounts by way of note.