| a) All income & expenditures are accounted for on Accrual basis except
Dividend which is accounted for on cash basis.
b) Investments
Long term investments are valued at cost Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary. Currentinvestments are valued at cost orMarket
value whichever is lower.
c) Fixed Assets
Fixed Assetsare stated at cost less accumulated depreciation.
d) Depreciation:
Depreciation has been provided on all assets on written down value
basis as per rates prescribed in Schedule XIV of the Companies Act,
1956. e) Inventories:
e) Inventories:
Inventories are valued at cost or Net realizable value whichever is
lower. The cost is determined on the FIFO basis.
f) Employees Benefits:
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the statement of profit and loss fa the year
in which the related service is render.
i) Post employment and other long term employee benefits are recognised
as an expense in the statement of profit and loss for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using actuarial
valuation techniques. Actuarial Gain or Losses in respect of post
employment and other long term benefits are charged to the statement of
Profitand Loss.
g) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds is recoverable value. An impairment loss is charged to the
statement of profit and loss in the year in which an asset is
identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount
h) Taxation:
Provision for current fax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act 1961.
Deferred tax resulting from "timing differences" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax assets is recognised and carried forward only to the
extent that there is a virtual certainty that the asset will be
realised infuture.
i) Provision, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resouroes.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed on the
financial statements.
|