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Accounting Policies of Uttam Value Steels Ltd. Company

Mar 31, 2015

A) System of Accounting

The financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, accounting standards notified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013. The Company accrues individual items of Income/ Expenses above Rs. 5000/- per item.

b) Fixed assets

(i) Fixed Assets are valued at cost, net of CENVAT, unless revalued, for which proper disclosure is made.

(ii) All expenditure and interest cost during the project construction period, are accumulated and shown as Capital Work-in- Progress until the project/assets commences commercial production. Assets under construction are not depreciated. Expenditure/Income arising out of trial run is part of pre-operative expenses included in Capital Work-in-Progress.

c) Depreciation

Depreciation on fixed assets is provided on depreciable value of assets using straight-line method on the basis of useful life specified in Schedule II to the Companies Act, 2013.

d) Revenue Recognition

Sales/Income in case of contracts/orders spreading over more than one financial year are booked to the extent of work billed. Sales include export benefits & net of sales return & trade discounts. Export benefits accrue on the date of export, which are utilized for custom duty free import of material / transferred for consideration.

e) Excise duty

Excise duty is accrued for at the point of manufacture of goods and accordingly is considered for valuation of finished goods stock lying in the factory as on the balance sheet date.

f) Custom duty

Customs Duty payable on imported raw materials, components and stores and spares is recognized to the extent assessed by the customs department.

g) Custom duty benefit

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports effected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made.

h) Lease Rentals

Lease rentals are expensed with reference to lease terms.

i) Inventories

The general practice adopted by the company for valuation of inventory is as under:-

i) Raw Materials : *At lower of cost and net realizable value.

ii) Stores and spares : At cost

iii Work-in-process/semi-finished goods : At cost.

iv) Engineering Plant Finished Goods : At lower of cost and market value.

v) Finished Goods/Traded Goods : At lower of cost and market value.

vi) Finished Goods at the end of trial run : At net realizable value.

vii) Scrap material : At net realizable value.

viii) Tools and equipments : At lower of cost and disposable value.

*Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

j) Research and Development expenses

Research and Development costs (other than cost of fixed assets acquired) are expensed in the year in which they are incurred.

k) Provision for Gratuity

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

l) Provision for Leave encashment

Provision for Leave encashment is made on the basis of actuarial valuation at the end of the year.

m) Investments

Long term investments are carried at cost less provision for permanent diminution in value. Current investments are carried at lower of cost or fair value.

n) Amortization of expenses

i) Equity Issue expenses : Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of 10 years

ii) Debenture Issue Expenses : Debenture Issue expenditure is amortized over the period of 10 years.

iii) Deferred Revenue Expenses : Deferred Revenue expenses are amortized over a period of 5 years.

o) Foreign Currency Transactions

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/ receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the period/year are translated at the period/ year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items Forward exchange contracts entered into, to hedge foreign currency risk of an existing asset/ liability.

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange differences on such contracts, except the contracts which are long-term foreign currency monetary items, are recognized in the statement of profit and loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or as expense for the period.

p) Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external/ internal factors. An impairment loss in accordance with Accounting Standard-28 "Impairment of Assets" is recognized wherever the carrying amount of an assets exceeds its recoverable amount, which represent the greater of the net selling price of assets and their value in use.

q) Provision for Doubtful Debts

The management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects. On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts.

r) Cash and Cash Equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprises cash at bank and in hand and fixed deposits with an original maturity of three months or less.

s) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that any outflow of resources will be required to settle the obligation. A contingent liability also arises in an extremely rare case where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the Financial statements.

t) Earning per Share

The company reports basic and diluted earning per share in accordance with AS - 20 'Earning per share' issued by the ICAI. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of shares outstanding for the year.


Mar 31, 2013

A) System of Accounting

The financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, accounting standards notified under sub-section (3C) of section 2II of the Companies Act, I956 and the relevant provisions of the Companies Act, I956. The Company accrues individual items of Income/ Expenses above Rs. 5000/- per item.

b) Fixed assets

(i) Fixed Assets are valued at cost, net of CENVAT, unless revalued, for which proper disclosure is made.

(ii) All expenditure, including advances given and interest cost during the project construction period, are accumulated and shown as Capital Work-in- Progress until the project/assets commences commercial production. Assets under construction are not depreciated. Expenditure/Income arising out of trial run is part of pre-operative expenses included in Capital Work-in-Progress.

c) Depreciation

Depreciation on all the assets has been provided on Straight Line Method as per Schedule XIV of the Companies Act, I956.

d) Revenue Recognition

Sales/Income in case of contracts/orders spreading over more than one financial year are booked to the extent of work billed. Sales include export benefits & net of sales return & trade discounts. Export benefits accrue on the date of export, which are utilized for custom duty free import of material / transferred for consideration.

e) Inventories

The general practice adopted by the company for valuation of inventory is as under:-

i) Raw Materials : *At lower of cost and net realizable value.

ii) Stores and spares : At cost

iii) Work-in-process/semi-finished goods : At cost.

iv) Engineering Plant Finished Goods : At lower of cost and market value.

v) Finished Goods/Traded Goods : At lower of cost and market value.

vi) Finished Goods at the end of trial run : At net realizable value.

vii) Scrap material : At net realizable value.

viii) Tools and equipments : At lower of cost and disposable value.

*Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

f) Excise duty

Excise duty is accounted for at the point of manufacture of goods and accordingly is considered for valuation of finished goods stock lying in the factory as on the Balance Sheet date.

g) Custom duty

Custom Duty payable on imported raw materials, components and stores and spares is recognized to the extent assessed by the customs department.

h) Custom duty benefit

Custom duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports effected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made.

i) Lease Rentals

Lease rentals are expensed with reference to lease terms.

j) Research and development expenses

Research and Development costs (other than cost of fixed assets acquired) are expensed in the year in which they are incurred.

k) Provision for Gratuity

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

l) Provision for Leave encashment

Provision is made for value of unutilized leave due to employees at the end of the year.

m) Investments

Long term investments are carried at cost less provision for permanent diminution in value. Current investments are carried at lower of cost or fair value.

n) Amortization of expenses

i) Equity Issue expenses : Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of 10 years

ii) Debenture Issue Expenses : Debenture Issue expenditure is amortized over the period of 10 years Debentures.

iii) Deferred Revenue Expenses : Deferred Revenue expenses are amortized over a period of 5 years.

o) Foreign currency transactions

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/ receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the period/ year are translated at the period/ year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

p) Impairment of assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external/ internal factors. An impairment loss in accordance with Accounting Standard-28 "Impairment of Assets" is recognized wherever the carrying amount of an assets exceeds its recoverable amount, which represent the greater of the net selling price of assets and their value in use.

q) Provision for doubtful debts

The management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects. On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts.

r) Cash and Cash Equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprises cash at bank and in hand and fixed deposits with an original maturity of three months or less

s) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that any outflow of resources will be required to settle the obligation. A contingent liability also arises in a extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the Financial statements.

t) Earning per Share

The company reports basic and diluted earning per share in accordance with AS - 20 "Earning per share" issued by the ICAI. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of shares outstanding for the year.


Mar 31, 2012

(a) System of Accounting:-

The financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, accounting standards notified under sub-section (3C) at section 211 of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.The Company accrues individual items of Income/ Expenses above Rs 5000/- per item

(b) Fixed Assets:-

1, Fixed Assets are valued at cost, net of CENVAT, unless revalued, for which proper disclosure is made,

2. All expenditure, including advances given and interest cost during the project construction period, are accumulated and shown as Capital Work-in-Progress until the project/assets commences commercial production. Assets under construction are not depreciated Expenditure/Income arising out of trial run is part of pre-operative expenses included in Capital Work-in-Progress

(c) Depreciation :-

Depreciation on all the assets has been provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956.

(d) Revenue Recognition :-

Sales/Income in case of contracts/orders spreading over more than one financial year are booked to the extent of work billed. Sales include export benefits & net of sales return & trade discounts Export benefits accrue on the date of export, which are utilized for custom duty free import of material / transferred for consideration.

(e) Inventories :

The general practice adopted by the company for valuation of inventory is as under -

Raw Materials : "At lower of cost and net

realizable value Stores and spares : At cost Work-in-process/

semi-finished goods . At cost Engineering Plant .

Finished Goods At lower of cost and market

value

Finished Goods/

Traded Goods : At lower of cost and market

value.

Finished Goods at : At net realizable value, the end of trial run

Scrap material At net realizable value

Tools and equipments . At lower of cost and disposable value

-Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost

(f) Excise Duty

Excise duty is accounted for at the point of manufacture of goods and accordingly is considered for valuation of finished goods stock lying in the factory as on the balance sheet date

(g) Customs Duty

Customs Duty payable on imported raw materials, components and and spares is recognized to the extent assessed by the customs department

(h) Customs Duty Benefit .

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis Accordingly, import duty benefits against exports effected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made

(i) Lease Rentals :

Lease rentals are expensed with reference to lease terms (j) Research and Development :

Research and Development costs (other than cost of fixed assets acquired) are expensed in the year in which they are incurred.

(j) Provision of Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

(k) Leave Salary :

Provision is made for value of unutilized leave due to employees at the end of the year (m) Investments :

Long term investments are carried at cost less provision for permanent diminution in value. Current investments are carried at lower of cost or fair value (n) Amortization of Expenses :

i) Equity Issue Expenses:

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of ten years.

ii) Debenture Issue Expenses:

Debenture Issue expenditure is amortized over the period of 10 years Debentures.

iii) Deferred Revenue Expenses:

Deferred Revenue expenses are amortized over a period of 5 years (o) Foreign Currency Transactions:

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the period/year are translated at the period/ year end rate The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items (p) impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external/ internal factors An impairment loss in accordance with Accounting Standard- 28 "Impairment of Assets " is recognized wherever the carrying amount of an assets exceeds its recoverable amount, which represent the greater of the net selling price of assets and their value in use.

(l) Provision for doubtful debts:

The management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts (r) Contingent Liability Unprovoked Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities


Jun 30, 2011

(a) System at Accounting:

The financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, accounting standards notified under sub-section (3C) of section 211 of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.The Company accrues individual items of Income/ Expenses above Rs 5000/- per item.

(b) Fixed Assets:-

1. Fixed Assets are valued at cost, net of CENVAT, unless revalued, for which proper disclosure is made.

2. Ali expenditure, including advances given and interest cost during the project construction period, are accumulated and shown as Capital Work-in-Progress until the project/assets commences commercial production. Assets under construction are not depreciated. Expenditure/Income arising out of trial run is part of pre-operative expenses included in Capital Work-in-Progress

(c) Depreciation:-

Depreciation on all the assets has been provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956.

(d) Revenue Recognition:-

Sales/Income in case of contracts/orders spreading over more than one financial year are booked to the extent of work billed. Sales include export benefits & net of sales return & trade discounts. Export benefits accrue on the date of export, which are utilized tor custom duty tree import of material / transferred tor consideration.

(e) Inventories:

The general practice adopted by the company for valuation of inventory is as under- Raw Materials : 'At lower of cost and net realizable value. Stores and spares : At cost Work-in-process/semi-finished goods : At cost. Engineering Plant Finished Goods : #At lower of cost and market value. Steel Plant Finished Goods : At lower of cost and market value. Finished Goods at the end of trial run : At net realizable value. Scrap material : At net realizable value. Tools and equipments : At lower of cost and disposable value. 'Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

# The Company has changed the valuation method, of Engineering Plant Finished Goods.lrom contract price method to lower of cost and market value method. Sines there is no Finished Goods Inventories as on 30.06.2011 there is no impact on the financials in the current period.

(f) Excise Duty:

The Excise duty payable on finished goods dispatches is accounted on the clearance thereof from the factory premises. Excise duty is provided on the finished goods lying at the factory premises and not yet dispatched as per the Accounting Standard 2 "Valuation of Inventories"

(g) Customs Duly :

Customs Duty payable on imported raw materials, components and stores and spares is recognized to the extent assessed by the customs department.

(h) Customs Duty Benetit:

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports effected during the period are accounted on estimate basis as incentive till the end of the period in respect of duty free imports of raw material yet to be made.

(i) Lease Rentals:

Lease rentals are expensed with reference to lease terms.

(j) Research and Development:

Research and Development costs (other than cost of fixed assets acquired) are expensed in the period in which they are incurred.

(k) Provision of Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation based or) the provisions of the Payment of Gratuity Act, 1972.

(I) Leave Salary:

Provision is made for value of unutilized leave due to employees at the end of the year

(m) Investments :

Long term investments are carried at cost less provision for permanent diminution in value. Current investments are carried at lower of cost or fair value.

(n) Amortization of Expenses :

i) Equity Issue Expenses:

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of ten years.

ii) Debenture Issue Expenses: Debenture Issue expenditure is amortized over the period of 10 years Debentures.

iii) Deferred Revenue Expenses:

Deferred Revenue expenses are amortized over a period of 5 years.

(o) Foreign Currency Transactions:

Foreign currency transactions during the accounting period are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the period are translated at the period end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

(p) Impairment of Assets :

The company determines whether a provision should be made for impairment loss on fixed assets (including Intangible Assets), by considering the indications that an impairment loss may has occurred in accordance with Accounting Standard - 28 "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made.

(q) Provision for doubtful debts:

The management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects. On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts.

(r) Contingent Liability:

Unprovided Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities.


Mar 31, 2010

1. a. Long Term Loans referred to in 1(a) and 1(b) above, are secured by way of hypothecation of all the movables except book debts, including movable machinery, machinery spares, tools and accessories, present and future, subject to prior charges created and/or to be created in favour of the Companys Bankers for Working Capital facilities.

b. (i) Long Term Loans referred to in 1(a) and 1(b) above, to the extent of Rs. 48866.43 lacs, are also secured by way of first mortgage and charge on Companys immovable properties, both present and future (excluding Staff Quarters at Wardha), ranking pari passu with other First Charge holders, subject to prior charge on specific equipments hypothecated to Banks for deferred credits and SBI Home Finance Limited for housing colony for the employees at Wardha and specified movables, both present and future, hypothecated to Banks for Working Capital.

(ii) Long Term Loans referred to in 1 (a) and 1 (b) above, to the extent of Rs. 2837.01 lacs, are also secured by way of first mortgage and charge on Companys immovable properties situated at Wardha, both present and future (excluding Staff Quarters at Wardha), ranking pari passu with other First Charge holders, subject to prior charge on specific equipments hypothecated to Banks for deferred credits and SBI Home Finance Limited for housing colonies for the employees at Wardha and specified movables, both present and future, hypothecated to Banks for Working Capital.

c. Long Term Loans referred to in 1(a) and 1(b) above, to the extent of Rs 16500.00 lacs, are to be secured by way of first mortgage and charge on Companys immovable properties, both present and future (excluding Staff Quarters at Wardha), ranking pari passu with other First Charge holders, subject to prior charge on specific equipments hypothecated to Banks for deferred credits and SBI Home Finance Limited for housing colonies for the employees at Wardha and specified movables, both present and future, hypothecated to Banks for Working Capital.

d The Term Loans of Rs. 353.97 lacs from SBI Home Finance Limited are secured by exclusive mortgage of the housing colony situated, at Wardha.

e. Long Term Loan referred to in 1(b) above, to the extent of Rs.3965.25 lacs, cash credit facilities assigned by banks, is secured against hypothecation of Raw Materials, Work-in-process, Finished Goods, Stores & Spares, Book Debts

etc., and by way of Second Charge on companys immovable properties, and also guaranteed by some of the directors of the Company.

2. a. Non-Convertible Debentures/ Bonds referred to in 2 above are secured / to be secured by way of first mortgage and charge on Companys immovable properties, both present and future (excluding Staff Quarters at Wardha), ranking pari passu with other First Charge holders, subject to prior charge on specific equipments hypothecated to Banks for deferred credits and SBI Home Finance Limited for housing colonies for the employees at Wardha and specified movables both present and future, hypothecated to Banks for Working Capital.

b. The Debentures referred in 2(vi) above are redeemable in 24 ballooning instalments from 31st July 2008 to 30th June 2010.

3. Cash Credit from Bank is secured against hypothecation of Raw Materials, Work-in-process, Finished Goods, Stores & Spares, Book Debts etc., and by way of Second Charge on Companys immovable properties, and also guaranteed by some of the Directors of the Company.

4. The loan mentioned in 1 above includes non interest bearing loans of Rs. 32599.40 lacs as per the loan restructuring terms.

(h) Customs Duly Benefit;

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports effected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made.

(i) Lease Rentals:

Lease rentals are expensed with reference to lease terms.

(i) Research and Development:

Research and Development costs (other than cost of fixed assets acquired) are expensed in the year in which they are incurred.

(k) Provision of Gratuity: ¦ Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

(I) Leave Salary:

Provision is made for value of unutilized leave due to employees at the end of the year.

(m) Investments:

Long term investments are carried at cost less provision for permanent diminution in value. Current investments are carried at lower of cost or fair value.

(n) Amortization of Expenses:

i) Equity Issue Expenses:

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of ten years.

(ii) Debenture Issue Expenses: Debenture Issue expenditure is amortized over the period of 10 years Debentures.

(iii) Deferred Revenue Expenses:

Deferred Revenue expenses are amortized over a period of 5 years.

(o) Foreign Currency Transactions:

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

(p) Impairment of Assets:

The company determines whether a provision should be made for impairment loss on fixed assets (including Intangible Assets), by considering the indications that an impairment loss may has occurred in accordance with Accounting Standard - 28 "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made.

(q) Provision for doubtful debts:

The management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects. On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts.

(r) Contingent Liability:

Unprovided Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities.

 
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