The Financial Statements are preparedon the basis of historical cost
convention, on the accounting principles of a going concern and in
accordance with the applicable accounting standards. All the expenses
and income to the extent considered payable and receivable,
respectively, unless specifically stated to be otherwise, are accounted
for on accrual basis.
B) FIXED ASSETS:
Fixed Assets are stated at cost including freight, duties, taxes and
all incidental expenses related thereto.
C) CAPITAL WORK-IN-PROGRESS
Expenditure related to and incurred during the implementation of the
projects is included under Capital Work-in-Progress and the same will
be capitalised under the appropriate heads on completion of the
D) DEPRECIATION / AMORTIZATION
Depreciation on Fixed Assets is provided for on written down value
method at the rates specified in Schedule XIV to the Companies Act 1956
(hereinafter referred to as the Act).
The inventories are valued at lower of cost and net realizable value.
Cost is assigned on weighted average basis. Obsolete, defective and
unserviceable stocks are provided for.
F) BORROWING COST
Borrowing cost directly attributable to acquisition, construction,
production of qualifying assets are capitalised as a part of the cost
of such assets up to the date of completion. Other borrowing costs are
charged to Statement of Profit and Loss.
i) Provision for Current Tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions of
Income Tax Act 1961.
ii) Deferredtax for timing difference between tax profit and book
profit is accounted for using the tax rates and laws as have been
enacted or substantively enacted as of the balance sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future and are reviewed for the
appropriateness of their respective carrying values at each Balance
(a) Interest (calculated on month end balance) amounting to Rs.
45,14,057 (Previous Year Rs. 10,63,000) has not been charged for the
year on loans and business advances given to an associates company as
considered appropriate by the management, interalia, considering the
long term business exigencies/ purposes.