| A Fixed Assets are stated at cost of acquisition/ construction less
accumulated depreciation. The cost includes all the pre-operative
expenses and the financing cost of borrowings related to the pre
production period. In case of revaluation of assets cost of acquisition
is substituted by appropriate value in terms of valuation by competent
professional.
B Pursuant to requirement of Schedule II of the Companies Act, 2013
(the Act), Company has revised the useful and residual life of assets
and depreciation rates as prescribed under the Schedule II of the Act
w.e.f. 1st April, 2014. In case of fixed assets where the residual
useful life was nil as at 01-04-2014, the Company has adjusted the net
written down values aggregating to Rs. 12,94,848 from retained
earnings. Further, due to applicability of Schedule II of the Act
during the year, the depreciation for the year is lower by Rs.
1,81,690/-.
C Foreign Currency Transactions:
i Export Sales- At the rates as on the date of negotiation or
collection ,where export bills are negotiated after the close of the
year, then at the year end rate when not covered by forward contract.
ii Expenditure- At the rates as on the date of transaction,
receivables, creditors and outstanding liabilities are translated at
the rate as at the close of the year, or at forward contract rate,
wherever applicable.
iii Foreign Currency Loans for acquiring Fixed Assets and outstanding
at the close of the Financial Year - At the contracted /prevailing rate
of exchange, at the close of the year. The gain or loss due to
decrease/increase in rupee liability due to fluctuations in rates of
exchange is adjusted to the cost of the assets acquired through these
loans. The depreciation on such increase/decrease in value of assets is
provided for prospectively on residual life of the assets.
D Investments are stated at cost.
E Stock of Raw Material, spare parts and work in process are valued at
cost.Finished goods are valued at lower of direct cost or net
realisable value.
F Expenditure During Construction Period : Expenditure incurred on
projects during implementation is capitalised and apportioned to
various assets on commissioning of the project.
G Preliminary, Capital Issue and Deferred Revenue Expenses Preliminary,
capital issue expenditure are written off in 10 years from the year of
commercial production.
H Retirement Benefit : Gratuity:- Provision for gratuity is made on the
basis of actual accrued liability if any.
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