Jord Engineers India Ltd. कंपली की लेखा नीति

Mar 31, 2009

(i) Basis of Preparation of Financial Statements: The financia! statements have been prepared under the historical cost convention, in accordance with the generally accepted Accounting Principles and in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956.

(ii) Sales: The Sales are accounted, inclusive of Excise Duty but net of Sales Tax/ VAT.

(iii) Fixed Assets and Depreciation:

{a) Fixed Assets are valued at cost of acquisition inclusive of inward freight, duties, taxes, etc. related to such acquisition but exclude capital MODVAT/CENVAT availed on such assets and adjustments arising out of exchange rate variation attributable to fixed assets. (b) Depreciation has been provided on Straightline Method in accordance with Section 205(2) (b) of the Companies Act, 1956 at the rate and requirement prescribed in schedule XIV of the Companies Act, 1956 (iv) Valuation of Inventories:

(a) Raw materials, consumable stores and spares are valued at cost or net realisable value, whichever is lower, on FIFO basis.

(b) Finished and Semifinished goods are valued at cost or net realisable value, whichever is lower. The valuation is determined by considering material, and other appropriate overheads.

(v) Foreign Currency Transactions:

(a) Expenditure in Foreign Currency and imports are accounted at the rate prevailing on the date of transaction. The difference in the rate at the time of realisation/ payments is absorbed in the profit and loss account.

(b) The liabilities denominated in Foreign Currency are restated at the yearend rate and exchange difference are either adjusted in the cost of respective Fixed Assets or dealt with in the Profit & Loss Account depending upon the nature of transactions.

(vi) Excise Duty: Excise Duty on Finished Goods manufactured is accounted for on clearance of goods from factory premises as per the revised provisions of Central Excise Rules, 1944 (CENVAT Credit Rules 2002).

(vii) Contingent Liabilities: Contingent Liabilities not provided for are disclosed in the accounts by way of notes specifying the nature and quantum of such liabilities.

(viii) Retirement Benefits: The liabilities in respect of Gratuity and Leave Encashment are provided on the actuarial basis.

(ix) Taxes on income: The Current tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax is recognised on timing differences between taxable income as per income Tax Act and the accounting income using tax rates and tax laws, which have been enacted or substantively enacted. Deferred tax assets are recognised only to the extent that there is a reasonable/ virtual certainty that the asset will be realised in future.