1. Basis of Accounting :
The Company adopts accrual concept in the preparation of accounts.
2. Revenue Recognition :
Revenue from sale of products is recognised upon passage of title to the customer which generally coincides
with their delivery and acceptance. Sales of Finished products comprise of subsidy received/receivable from
Government on sale of Single Superphosphate and exchange differences arising on realisation of export
proceeds but does not include excise duty and indirect taxes.
3. Fixed Assets :
Fixed Assets are accounted at historical cost. Additions are recorded at cost of acquisition or
construction including directly attributable
4. Treatment of Expenditure during Construction period :
Expenditure incurred during construction period alongwith cost of trial runs have been debited to capital
work in progress account. On the completion of work the costs are allocated to respective fixed assets
account. The financial cost relating to specific borrowings taken for construction of fixed asset have been
capitalised upto the date of commissioning of the asset.
5. Depreciation :
Depreciation has been provided on straight line basis on Energy Saving
Devices after determining the life of assets on the basis of valuer's
Depreciation in respect of Plant & Machinery, Building and Road is provided on Straight Line Method and on
other assets on Written Down Value Method of depreciation in accordance with Schedule XIV or the Companies
Act, 1956. No amortisation is provided in accounts in respect of Leasehold Land.
6. Investments :
Investments, being long term are valued at cost.
7. Inventories :
Inventories of raw materials, semi-finished goods, stores, components of spares are valued at cost and
finished goods are valued at lower of cost or net realisable value.
8. Retirement Benefits :
Provision for gratuity liability to employees is made on the basis of
Leave encashment :
Accrued liability provided towards leave encashment benefits payable to
employees is evaluated on the basis of actuarial valuation.
9. Excise duty on finished goods :
Excise duty on finished goods is taken into account only at the time of
clearance of goods.
10. Foreign Currency Transactions :
Foreign currency transactions are recorded at the exchange rate prevailing at the time of transaction.
Receivables and Payables as at
the year end are restated at closing rates. Exchange differences arising on realisation/restatement are
adjusted to sales and purchases