Property, plant and equipment:
Property, plant and equipment These are stated at cost less accumulated depreciation and accumulated impairment losses, if any, except freehold land and capital work-in-progress, which are stated at cost less impairment losses, if any. Intangible assets - computer softwares An intangible asset is recognised if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and that the cost of such asset can also be measured reliably.
Stores, spare parts and loose tools :
Stores, spare parts and loose tools These are valued at lower of moving average cost and net realisable value. Cost comprises invoice value and other direct costs but excludes borrowing costs. Obsolete and used items are recorded at nil value. Provision is made for slow moving items where necessary and is recognised in the profit and loss account. Stock-in-trade Stock in trade is valued at the lower of average cost or cost on first-in-first-out (FIFO) basis, and net realisable value. The cost formula is dependent on the nature of the stock categories but the same formula is applied to all items of a similar nature. Cost comprise invoice value, charges like excise, custom duties and other similar levies and other direct costs.
Trade debts and other receivables:
Trade debts and other receivables Trade debts and other receivables are stated initially at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment, if any. A provision for impairment of trade debts and other receivable is established where there is objective evidence that the Company will not be able to collect all amounts daccording to the original terms of the receivables.Trade debts an receivable are written off when considered irrecoverable. Taxation-net Provision for current taxation is based on the taxable income for the year determined in accordance with the prevailing law for taxation on income. The charge for current tax is calculated using prevailing tax rates. The charge for current tax also includes adjustments for prior years or otherwise considered necessary for such years.
Deferred Tax:
Deferred Tax Deferred tax is accounted for using the balance sheet liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Share capital:
Share capital Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase. Share capital can be composed of both common and preferred shares. Retirement and Service Benefit Pension funds The Company operates approved funded defined benefit pension schemes separately for both management and non-management employees. The schemes provide pension based on the employees last drawn salary.
Trade and other payables:
Trade and other payables These are stated initially at fair value and subsequently measured at amortised cost using the effective interest rate method. Exchange gains and losses arising in respect of liabilities in foreign currency are added to the carrying amount of the respective liability. Provisions Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event, and it is probable that outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect current best estimate.