105 / 140
103
Notes
to Consolidated financial statements
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
(contd)
4 Other Significant Accounting Policies
4.1 Basis of Preparation:
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and in compliance, in all material aspects, with the generally accepted accounting principles in India,
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Companies Act, 1956.
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of the Company and other criteria set out in Schedule VI to the Companies Act 1956. Based on the nature
of products and the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current
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4.2 Use of Estimates:
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requires the Management to make estimates and assumptions that affect the reported amounts of assets
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of operations during the reporting period. These estimates are based on the Management evaluation of
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future revisions and actual results in subsequent period. Differences are adjusted in subsequent periods as
they occur.
4.3 Fixed Assets:
a) Tangible Assets:
i) Fixed assets other than (ii) and (iii) below are carried at cost of acquisition |construction including
incidental expenses directly attributable to the acquisition|construction activity, as the case may
be, less accumulated depreciation, amortisation and impairment as necessary.
ii) Assets received free of cost on premature cancellation of a lease agreement are valued at fair
value.
iii) Freehold land, lease hold land at Panoli and certain business premises have been revalued as per
the report of approved valuer.
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b) Intangible Assets:
Computer software includes Enterprise Resource Planning Project and other cost relating to software
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integration services.
4.4 Depreciation and Amortisation:
Depreciation:
Depreciation on building and plant and equipment is being provided on ‘Straight Line Method’ and on
all other assets on ‘Written Down Value’ basis in accordance with the provisions of Section 205(2)(b) and
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XIV to the said Act. An amount in respect of assets revalued in the past, the depreciation charge over the
enhancement to cost is withdrawn from the revaluation reserves and adjusted against the depreciation
charge each year.