a) Fixed Assets are carried at cost of acquisition/installation. They
are shown net of accumulated depreciation/amortization.
b) DEPRECIATION AND AMORTISATION :
Depreciation : Depreciation on all assets is provided uniformly under
written down value method as per the rates and in the manner specified
in Schedule XIV of the Companies Act, 1956, except in case of following
assets where due to nature of business and type of assets suffering
extra wear and tear, the rates used as also in earlier years are :
Hospitality Division :
Kitchen Equipments : 33.33%
Furniture & Fixture : 33.33%
Electrical Installations : 20.00%
i) Leasehold land is amortised over the period of lease.
ii) 1/3rd portion of balance amount in loose tools account at the end
of the year is written off.
c) Investments : All Non-Current Investments are stated at cost of
acquisition. Diminution of temporary nature in value of such long-term
investments is not provided for except where determined to be of
permanent nature. The provision for diminution is reviewed at every
year end in relation to market value and suitable write backs / write
offs are accounted. Current investments are stated at lower of cost and
d) Maharashtra Value Added Tax and Central Sales Tax are accounted on
the basis of liability as per periodical returns filed with concerned
tax authorities. Liability or refund on assessment/ Vat audit report,
if any, is accounted as and when the asessments/Vat audit are
completed. The final liability in respect of unassessed
years/unaudited years under MVAT Act remains indeterminate.
e) Income and Expenditure are accounted on accrual, as they are earned
or incurred, except in case of those involving significant
uncertainties where the same is accounted on crystallization.
f) Inventories of Stock-in-trade are valued as under :
i) Auto spare parts - at lower of cost or realisable value.
(Cost in relation to spare parts of Auto Division business includes
purchase price net of rebates and incentives from suppliers, octroi and
ii) Food & Beverages, in case of Hospitality Division - at cost or net
realisable value whichever is lower. Cost is determined on the basis of
Weighted Average Method.
g) Retirement Benefits :
Employee''s Provident Fund and Pension Scheme : Monthly contributions
are remitted to Central Provident Fund Commissioner who maintains the
accounts and pays the dues on retirement.