Amal Ltd 2012-13

K. RevenueRecognition: L. Provisions,Contingent Liabilities andContingentAssets: M. Research&Development Expenditure: N. EmployeeBenefits: a) Sale of Goods: Revenue is recognisedwhen the significant risks and rewards of ownership of goods have passed to the buyer, which generally coincides with delivery. It includes excise duty but excludes value added tax and sales tax. b) Lease rental income is recognisedon accrual basis. c) Dividend income is accounted for in the year inwhich the right to receive the same is established. d) Interest income is recognised on a time proportion basis taking into account the amount outstandingand the rate applicable. A provision is recognisedwhen an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date and adjusted to reflect the currentmanagement estimates. Noprovision is recognised for – i. Any possible obligation that arises frompast events and the existence of whichwill be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company;or ii. Any present obligation that arises from past events but is not recognised because it is not probable that an outflowof resources embodying economic benefitswill be required to settle the obligation ; or a reliable estimate of the amount of obligation cannot bemade. iii. Such obligations are recorded as contingent liabilities. These are assessed continually and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate canbemade. iv. Contingent assets are not recognised in the financial statements since this may result in the recognitionof income thatmay never be realised. Research&Development expenditure is charged to revenue under the natural heads of account in the year inwhich it is incurred.However,Research &Development expenditure on fixed assets is treated in the sameway as expenditureonother fixed assets. i) Definedcontributionplan: Contribution paid | payable by the Company during the period to Provident Fund, Employees' Deposit Link Insurance Scheme, Officer Super Annuation Fund, Employees' State Insurance Corporation,and LabourWelfare Fund are recognised in the Statement of Profit and Loss. Amal Ltd | Annual Report 2012-13 Notes to financial statements