| a) Fixed Assets
Capitalised at acquisition cost including directly attributable cost.
Interest and incidental expenditure during construction are also
capitalised where appropriate. Expenditure incurred during construction
period has been capitalised on a pro rate basis on the buildings, plant
& machinery and capital work in progress on commissioning of the
project.
b) Depreciation
Depreciation has been provided on the Straight Line Method in
accordance with Schedule XIV of the Companies Act, 1956.
c) Inventories
Inventories are valued at lower of cost or net realisable value. Cost
are determined on the basis of FIFO. Finished goods and Work in process
include an appropriate share of overheads.
d) Retirement Benefits
Contributions to Provident Fund is charged to Profit and Loss account.
The Company set up its own Gratuity Fund Trust and the Premiums are
charged to Profit and Loss account. In relation to superannuation and
leave salary, the Company complies with the statutory requirements.
e) Provision for Current and Deferred Tax
Provision for Current Income Tax is made on the taxable income using
the applicable tax rules and laws. Deferred tax Assets are not
recognised unless there is a sufficient assurance with respect reversal
of the same in future years.
f) Foreign Currency Transactions
Foreign exchange transactions are recorded at the exchange rates
prevailing on the date of transactions. The Net loss/gain arising on
such restatement is adjusted to the profit & loss account except
exchange difference related to acquisition of fixed assets. The company
has exercised the option as per the Companies Accounting Standard
Rules, 2009. As per the option exchange difference so far as they
relate to acquisition of depreciable capital assets are adjusted to
fixed assets.
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