Trident

Revenue Recognition
Original
Revenue is recognized at the time of transfer of all significant risks and rewards of ownership to
the buyer and when the Company does not retain effective control of goods transferred to a
degree usually associated with ownership, i.e., at the point of dispatch of finished goods to the
customers.
Revenue from sale of IT enabled annual maintenance contracts services is recognized on time
proportion basis. Revenue from job charges is recognized when services are rendered and
where no significant uncertainty exists regarding the collection of amount of consideration.
The revenue in respect of duty drawback and similar other export benefits is recognized on post
export basis at the rate at which the
entitlements accrue and is included in the revenue from operations.
Insurance claims are recognised when there exists no significant uncertainty with regard to the
amounts to be realized and the ultimate
collection thereof Borrowing costs
Modified
Revenue recognition is done in different ways for the organization as per their classification of
goods and services
Revenue recognition for goods is done like we have already seen in case of transfer of goods,
i.e. when the ownership is transferred and no risk or reward is retained by the seller and is done
at the point where the good is finally dispatched to the buyer.
Revenue of Services (IT enabled manual Contracts) as we have studied is done on a time
proportion basis by reference to degree of completion. The revenue though is recorded only
when the services are rendered and when the collection of amount for the services rendered is
assured.
Insurance claims are recognized only when there is certainty regarding the collection of
amounts to be realized.
The revenue in respect of duty drawback and similar other export benefits is recognized on post
export basis at the rate at which the
entitlements accrue and is included in the revenue from operations. not understood
Fixed assets
Fixed assets are stated at cost (net of CENVAT) less accumulated depreciation and impairment
losses, if any. Cost of acquisition is inclusive of freight, duties, taxes and other incidental
expenses and interest on loan taken for the acquisition of qualifying assets up to the date the
assets is ready for its intended use.
The Company has adopted the provisions of para 46/46A of AS 11 The Effects of Changes in
Foreign Exchange Rates, accordingly, the exchange differences arising after April 1, 2007 on
reinstatement/settlement of long term foreign currency borrowings relating to acquisition of
depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over
the remaining useful life of such assets.

Depreciation/amortization
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less
its estimated residual value.
Depreciation on tangible fixed assets has been provided on the straight-line method as per the
useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the
following categories of assets, in whose case the life of the assets has been assessed as under
based on technical advice, taking into account the nature of the asset, the estimated usage of
the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support, etc.:
General plant and machinery on triple shift basis - 9.5 years
Computers including servers, network and end user devices - 5 years
Office equipments - 10 years
Vehicles - 6 years
Leasehold land is amortised over the duration of the lease.
The intangible asset (software) is amortised over the period of software license or 5 years,
whichever is less.

Assets
Fixed Assets: The Fixed assets are stated at the net cost required to acquire the asset less the
depreciation and the impairment losses. Cost of asset acquisition includes the labour costs,
other incidental expenses and interest expenses.
Depreciation:
The depreciation is calculated using the Straight Line Method where the amount of depreciation
is calculated based on the cost of the asset subtracted from its salvage value. The life of the
asset has been considered taking into account the nature of the asset, estimated use of asset,
operating conditions, etc, and is as per following:
General plant and machinery on triple shift basis - 9.5 years
Computers including servers, network and end user devices - 5 years
Office equipments - 10 years
Vehicles - 6 years
Amortzation is calculated for intangible assets over the period of five years or software license
duration, whichever comes first.

Investments:
Investments are accounted for using cost spent for getting the investment. Also a provision is
taken for diminishing values of the assets and the provision is subtracted from the investment
cost.
Current assets are valued at lower of cost or fair value.
Inventories:

The inventories of raw materials, finished good and work in progress goods are valued at the
Net realizable value of the goods or cost of acquisition of the goods (whichever is lower).
Impairement of Assets:
If there is a case for any impairment on the carrying values of the assets, impairment is
recognised by using the estimation of recoverable amounts of such assets if the valuation of
these assets is greater than their recoverable amounts. The recoverable amount is the higher of
fair value and the expected value. Value in use is arrived at
by discounting the future cash flows to their present value based on an appropriate discount
factor. The reversal of impairment
loss is also recognised when there is indication that an impairment loss recognised earlier for an
asset no longer exists or has decreased.
Provisions and Contigent Liabilities:
The Contingent liabilities valuation is generally disclosed in the notes to the financial statements
separately.
Provisions are recorded at amounts provisioned for settling the obligations which may came at a
future date.
Borrowing Costs:
Borrowing costs include interest and amortisation of ancillary costs incurred in relation to
borrowing, etc. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the
period from commencement of activities relating to construction/development of the qualifying
asset upto the date of capitalisation of such asset are added to the cost of the assets. Qualifying
asset is one that necessarily takes substantial period of time to get ready for its intended use.--Not understood