Submitted by: Submitted by w0rdsmith
Views: 369
Words: 2247
Pages: 9
Category: Business and Industry
Date Submitted: 09/02/2010 05:51 AM
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...