Birtannia

Accounting policy

(a) Basis of accounting and preparation of financial statements

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting to comply in all

material aspects with the applicable accounting principles in India,

the applicable Accounting Standards notified u/s 211(3C) of the

Companies Act, 1956 and the relevant provisions of the Companies Act,

1956.

(b) Use of estimates

The preparation of financial statements, in conformity with Generally

Accepted Accounting Principles, requires that the management makes

estimates and assumptions that affect the reported amounts of assets

and liabilities, disclosure of contingent liabilities as at the date of

financial statements and the reported amounts of revenue and expenses

during the reported period. Actual results could differ from those

estimates. Any revision to accounting estimates is recognised

prospectively in current and future periods.

(c) Fixed assets

Tangible assets

Tangible assets are stated at their original cost less accumulated

depreciation. Cost includes inward freight, duties, taxes and expenses

incidental to acquisition and installation, net of CENVAT and VAT

credit, where applicable.

Intangible assets

Intangible assets are stated at cost of acquisition less accumulated

amortisation.

(d) Depreciation and amortisation

Depreciation in respect of all the assets acquired upto 30 June 1984 is

provided on written down value method. For additions on or after 1 July

1984, straight line method has been used. Depreciation rates are

estimated by the Company and are as specified in the amended Schedule

XIV of the Companies Act, 1956, except relating to vehicles which are

depreciated over a period of five years. Assets costing individually

upto Rs. 5 are fully depreciated in the year of addition. Computer

software is amortised over a period of six years.

Leasehold land is amortised over the period of...