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WeP Peripherals Limited (formerly known as Wipro ePeripherals Limited) formed on 5th July 2000 with the initial authorised share capital of Rs.100 Million.

Subsequently shareholders in general meeting had given their consent to increase the Authorised Share Capital of the Company, at various periods. The Authorised Share capital as on 30th June 2004 is Rs.30,00,00,000 (Three hundred million) divided into 27,000,000 (Twenty Seven Million) Equity shares of Rs.10/- each and 3,000,000 (Three Million) redeemable Preference Shares of Rs.10/-.

Paid up capital As on 31^th March 2008:
Equity Shares:
19,56,994 Shares of Rs.10/- each fully paid up aggregating to Rs.1,95,69,940

Preference Shares:
Nil (Redemed on 24th August 2003 at Rs.14/- per share).

2) Accounting Policies

Accounting Convention
Books of accounts are maintained on accrual basis under historical cost convention. The accounting is on the basis of a going concern concept.

Revenue Recognition

Sales are accounted net of excise duty and Sales tax unless separately charged and are net of discounts.
Income from Print & Save off-site services is recognised based on the usage of such assets by the Customer on a monthly basis and from on-site services recognized on accrual basis.
Agency Commission is accrued on shipment of consignment by Principal.
Other income is recognized on accrual basis.

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Provision for retirement benefits

The Company has a defined benefit of Gratuity scheme and for employees covered under Group Gratuity scheme of LIC, Gratuity is charged to Profit and Loss account as per the premium demanded by LIC. Provision for leave benefit for employees is determined as per actuarial valuation.

Defined contributions for provident fund and pension are charged to the Profit and Loss account based on contributions made under the applicable laws.

Contribution for Superannuation is provided as per applicable schemes.

Defined contributions for provident fund and pension are charged to the Profit and Loss account based on contributions made.

Contribution for Superannuation is provided as per applicable schemes.

Fixed Assets and Depreciation
Fixed Assets are stated at cost (Gross Block) less accumulated depreciation. Capital work in progress includes advances.
Direct costs are capitalized until the assets are ready to be put to use.
The company depreciates fixed assets under straight line method based on estimated useful lives that are lower than those implicit in schedule XIV of the Companies Act. Accordingly, the rates of depreciation used by the Company are higher than the minimum prescribed by schedule XIV.
Individual Assets costing less than Rs 5,000 are depreciated in full in the year of purchase.
Depreciation is charged on a pro-rata basis for assets purchased / disposed during the year.
The initial cost of assets under 'Use & Pay' is charged off over the useful life of the asset.

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Intangible Assets

Acquired intangible assets alone are capitalized. The company follows straight line method for amortisation of intangible assets.

Asset	Amortisation period
Computer Software	24 months
Goodwill	36 months
Technical Know-how	60 months

Foreign Currency transactions

Foreign Currency transactions are recorded at the spot rate at the beginning of the month concerned.

Year end balances of Foreign Currency Assets and Liabilities are restated at the closing rate. Resultant differences are charged to revenue account.

Inventories

Finished Goods are valued at lower of cost or net realizable value.

Cost is arrived at on weighted average basis.

Other Inventories are valued at cost less provision for obsolescence.

Investments

Long Term Investments are stated at cost. Diminution in value is provided for where the management is of the opinion that the diminution is of permanent nature.

Short Term Investments are stated at cost or market value whichever is lower.

Investment in subsidiary is accounted on cost method whereby the company recognizes only dividends received from the subsidiary as income. In case of losses made by subsidiary, other than temporary, adequate provision is made to recognize any decline in the value of investments.

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Research & Development

The company incurs certain expenditure for new product development or upgradation of features in the existing products. Any revenue expenditure incurred is charged off during the financial year in which it is incurred. Any capital expenditure is shown as addition to fixed assets.

Tax expenses

Tax expense is worked out after considering the deferred tax asset or deferred tax liability to recognize the timing difference between profit as per financial statements and profit considered for income tax as required by the Accounting Standard - 22.

Provisions

Provisions are recognised when there is a present obligation as a result of past events, 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 based on the best estimate required to settle the obligation on the balance sheet date. These are reviewed at each balance sheet date.

The following provisions are made.
a. Legal Provision
b. Warranty Provision

Legal provisions are made as per the requirements of the applicable legislation.

Warranty provision is arrived at considering the warranty period and the rate of failures determined from historical information.

Products are sold with warranty for 12 months. Warranty Provisions are determined based on our past experience of expenses incurred during the warranty period. They represent the best estimate of likely expenses during the unexpired warranty period.

Impairment of Assets

Assets are subject to tests of impairment as per Accounting Standard -28 on Impairment of Assets.

Depreciation

Depreciation is provided on straight line method at the following rates after considering the estimated commercial life of the asset.

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Asset	Depreciation rate applied	Rate as per schedule XIV
Air Conditioners	25%	4.75%

Computers and Printers	50%	16.21%

Electrical Installations	25%	4.75%

Furniture and Fixtures	20%	6.33%

Moulds	20%	11.31%

Office Equipment's	20%	4.75%

Plant and Machinery	25%	4.75%

Testing Equipment's	25%	4.75%

Vehicles	25%	9.50%

*Use and Pay Assets	40%	16.21%

* Depreciation on Use and Pay assets:

The Company utilises certain portion of its printers for Print & Save business. Such assets are capitalised as fixed assets at cost under the head Use and Pay assets. Value of such assets were depreciated on a straight line basis over a period of 30 months.

3)Accounting Standards

Compliance with Accounting Standards

AS	Accounting Standards	Requirement	Applicable/ Not Applicable	Followed/ Deviated	Remark
AS 1	Disclosure of Accounting Policies	Significant Accounting Policies have to be disclosed	Applicable	Yes	Significant Accounting Policies are disclosed in the Annual Report
AS 2	Valuation of Inventories	Conservatism to be followed for valuing inventory. Cost to be arrived based on FIFO or Weighted average method	Applicable	Yes	Conservatism is the watchword while valuing stocks. Provision is made for obsolescence. Weighted average basis is adopted for arriving at cost.
AS 3	Cash Flow Statements	Disclosure of cash flow from operating, investing and financing activities separately.	Applicable	Yes	Cash Flow statement complying with the prescribed norms is part of Annual Report
AS 4	Contingencies and Events Occuring after the Balance Sheet Date	Prescribes detailed norms for measuring and disclosing contingencies and significant events occuring after the Balance Sheet date	Applicable	Yes	Contingent liabilities are disclosed as part of Annual Report and material events subsequent to balance sheet date are disclosed
AS 5	Net Profit or Loss for the period,Prior Period and Extraordinary Items and Changes in Accounting Policies	Stipulates disclosure norms for prior period, extraordinary items and impact of changes in Accounting Policies	Applicable	Yes	Non recurring expenses are shown separately in Financial Statements. Impact of changes in Accounting Policies are also disclosed
AS 6	Depreciation Accounting	Spells out norms on various aspects of depreciation policy like the factors influencing depreciation; impact of change in methods;accounting for change in useful life; depreciation on revalued amounts etc	Applicable	Yes	Conservative depreciation policy is followed. The Rates of depreciation are based on Useful life and the rates applied under straight line method are substantially higher than the rates prescribed under Schedule XIV.
AS 7	Accounting for Construction contracts	Spells out standards for accounting construction contracts with long gestation periods.	Not Applicable	-	Company is not engaged in activities falling under the purview of AS 7
AS 9	Revenue Recognition	Lays down standards for recognising revenue in terms of time and quantum.	Applicable	Yes	The norms set out the Standard are complied while recognising different streams of revenue
AS 10	Accounting for Fixed Assets	Stipulates norms for valuation of fixed assets,revaluation and changes in value upon repairs/improvement	Applicable	Yes	The norms set out the Standard are complied while valuing fixed assets
AS 11	Accounting for the Effects of Changes in Foreign Exchange Rates	Lays down standards for accounting for effects of changes in foreign exchange rates	Applicable	Yes	The norms set out the Standard are complied while accounting gains/losses stemming from exchange rate fluctuation
AS 12	Accounting for Government Grants	Lays down standards for accounting for government grants received in cash or in kind	Applicable	Yes	Company is availing Sales tax deferral benefits as applicable under APGST .
AS 13	Accounting for Investments	Current and long term investments to be distinguished and the standard prescribes that current investment should be accounted on cost or market price whichever is lower	Applicable	Yes	The norms set out in the Standard are adhered to
AS 14	Accounting for Amalgamations	Lays down norms for accounting when two or more comapanies lose their independent existence and merge	Not Applicable	Not Applicable	-
AS 15	Accounting for Retirement Benefits in the Financial Statement of Employers	Lays down norms for accounting retirement benefits	Applicable	Yes	The norms set out in the Standard are complied with while accounting for Retirement Benefits
AS 16	on Borrowing Costs	Stipulates norms for capitalising borrowing costs, commencement and cessation of capitalisation	Applicable	Yes	All borrowing costs incurred are charged off
AS 17	Segment Reporting	Stipulates the norms of identifying business and gegraphical segments and disclosing information segment wise.	Applicable	Yes	Business of the Company is divided into two business segments viz., WePSmart and WeP Products. Segment Report is enclosed as part of financial statements.
AS 18	Related party disclosures. Related Party Disclosures	Lays down standards for identifying related parties and stipulates disclosure of transactions with them	Applicable	Yes	The norms set out in the Standard are adhered to
AS 19	Leases	Stipulates norms for distinguishing financial and operating lease and accounting for the same	Applicable	Yes	-
AS 20	Earnings Per Share	Lays down norms for computing EPS and dilutive EPS	Applicable	Yes	Annexure to the Director's Report contains DEPS
AS 21	Consolidated Financial Statements	Consolidated Financial Statements	Applicable	Yes	Consolidated financial statements is being given
AS 22	Accounting for Taxes on Income	Stipulates norms for valuing deferred tax asset/liability and circumstances giving rise to the same	Applicable	Yes	Deferred tax assets/liabilities are recognised as per the Standard
AS 23	Accounting for Investments in Associates in Consolidated Financial Statements	Stipulates norms for accounting investments in associates in consolidated financial statements	Applicable	Yes	The Company has no associates as defined under the Accounting Standard.
AS 24	Discontinuing Operations	Lays down norms for identifying discontinued operations and accounting for the same	Not Applicable	Not Applicable	-
AS 25	Interim Financial Reporting	Lays down reporting norms while issuing interim financial reports	Applicable	Yes	IFR is prepared adhering to the same polices governing Annual Financial Statements
AS 26	Intangible Assets	Lays down norms for accounting and valuing intangible assets	Applicable	Yes	Goodwill is being amortised at the rate 33% and the same is reviewed at each balance sheet date. Technical Knowhow is amortised over a span of 60 months.
AS 27	Financial Reporting of Interests in Joint Ventures	Stipulates conditions for accounting and reporting of interests in Joint Ventures	Not Applicable	Not Applicable	-
AS 28	Impairment of Assets	Stipulates norms for measuring value in use, net realisable value and recognisisng any impairment of asset	Applicable	Yes	-
AS 29	Provisions, Contigent Assets & Contigent Liabilities.	Sets out scientific & rational way of assessing provisions and recoginising contigent assets & contigent liabilities.	Applicable	Yes	-

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