Mar 31, 2010
A. System Accounting :
(i) Financial Statement are based on historical cost.
(ii) The Company Generally follows the mercantile System of Accounting
and recognizes Income & Expenditure on the Accrual Basis Except those
with Significant Uncertainties
B. Sales :
Sales Includes Excise Duty and Excludes VAT & CST and is Net of Sales
Returns.
C. Fixed Assets :
Fixed Assets are stated at cost net of Modvat All Cost Including
Financing Costs till Commencement of Commercial Production are
capitalised.
D. Depreciation :
Depreciation is Provide as per Straight Line Method Basis as per Rate
Specified under Schedule: XIV of the Companies Act, 1956. Depreciation
on Addition is Provided Proportionately from the Month of Addition.
E. Borrowing Cost :
Borrowing Cost of the funds borrowed for the qualifying assets is
capitalized till the date of commencement of commercial Production
other borrowing cost is charged to revenue.
F. Inventories :
Raw Material At Cost- determined on FIFO Basis
Packing Materials At Cost - determined on FIFO Basis
Fuel, Stores & Spares At Cost- determined on FIFO Basis
Finished Goods At Cost or Market Value whichever is lower
Work in Process At Cost
Wastage At Realisable Value
G. Valuation of Investment:
Long term investments are valued at cost of acquisition.
H. Foreign Currency Transaction :
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Current Assets and Current
Liabilities are translated at the yearend exchange rate and the Profit
or Loss determined is recognized in the Profit and Loss Account.
I. Prior Period Items :
Income and Expenditure pertaining to prior period. Where ever material
affecting the operating results disclosed separately.
J. Retirement And Other Employee Benefits :
Repayments for present liability of future payments of Gratuity is
being made to approved gratuity which fully cover the same under group
gratuity policy with Life Insurance Corporation of India. The gratuity
trusts are covered with Life Insurance of India (LIC) and premiums are
paid on advice from LIC, which determines the same on the basis of
actuarial valuation. Provision for leave encashment is made as at the
yearend as per the financial figures and other details provided and
certified by the management
K. Taxes on Income :
Provision for current tax is made in accordance with the provisions of
the Income Tax Act, 1961. Deferred tax on account of timing difference
between taxable and accounting income is provided considering the tax
rates and the tax laws enacted or substantively enacted by the Balance
Sheets date in accordance with Accounting Standard -22 of the Institute
of Chartered Accounts of India.
L. Impairment Of Assets :
The Company evaluates the impairment losses on the fixed assets
whenever events of changes in circumstances indicate that their
carrying amounts may not be recoverable. If such assets are considered
to be impaired the impairment loss is then recognized for the amount by
which the carrying amount of the assets exceeds the recoverable amount,
which is the higher of an assets net selling price and value in use.
For the purpose of assessing impairment, assets are grouped at the
smallest levels for which there are sep arate ly identifiable cash
flow.
M. Provisions, Contingent Liabilities And Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
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