Dsfd
2007-08
2) Revenue recognition:
a) Sales:
i) Domestic Sales are accounted for on despatch from the point of sale. ii) E xport sales are recognised on the basis of the dates of the Mate’s Receipt and initially recorded at the relevant exchange rates prevailing on the date of the transaction.
b) Income:
The Company recognises income on accrual basis. However, where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.
(1) Interest income is accrued over the period of the loan / investment and net of amortisation of premium / discount with respect to fixed income securities, thereby recognising the implicit yield to maturity.
(2) Dividend is accrued in the year in which it is declared whereby a right to receive is established.
(3) Profit / loss on sale of investments is recognised on the contract date.
(4) Benefit on account of entitlement to import goods free of duty under the “Duty Entitlement Pass Book
Scheme” is accounted in the year of export if the same can be measured with reasonable accuracy. Fixed Assets and Depreciation
(A) Fixed Assets
Fixed Assets except freehold land are carried at cost of acquisition, construction or at manufacturing cost, as the case may be, including pre-operative expenses in the case of self manufactured assets / plants / undertakings, less accumulated depreciation and amortisation.
(B) Depreciation and Amortisation:
(a) Leasehold land:
Premium on leasehold land is amortised over the period of lease.
(b) On Plant & Machinery given on Lease:
Depreciation on Plant & Machinery and Dies and Moulds given on lease is being provided at the rates worked out on Straight Line Method over the primary period of lease as stated in the Lease Agreement or at the rates specified in Schedule XIV to the Companies Act, 1956 whichever is higher, on Pro-rata basis with reference to the month of commencement of lease period. (c) On Pressure Die Casting (PDC) Dies:
2) Revenue recognition:
a) Sales:
i) Domestic Sales are accounted for on despatch from the point of sale. ii) E xport sales are recognised on the basis of the dates of the Mate’s Receipt and initially recorded at the relevant exchange rates prevailing on the date of the transaction.
b) Income:
The Company recognises income on accrual basis. However, where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.
(1) Interest income is accrued over the period of the loan / investment and net of amortisation of premium / discount with respect to fixed income securities, thereby recognising the implicit yield to maturity.
(2) Dividend is accrued in the year in which it is declared whereby a right to receive is established.
(3) Profit / loss on sale of investments is recognised on the contract date.
(4) Benefit on account of entitlement to import goods free of duty under the “Duty Entitlement Pass Book
Scheme” is accounted in the year of export if the same can be measured with reasonable accuracy. Fixed Assets and Depreciation
(A) Fixed Assets
Fixed Assets except freehold land are carried at cost of acquisition, construction or at manufacturing cost, as the case may be, including pre-operative expenses in the case of self manufactured assets / plants / undertakings, less accumulated depreciation and amortisation.
(B) Depreciation and Amortisation:
(a) Leasehold land:
Premium on leasehold land is amortised over the period of lease.
(b) On Plant & Machinery given on Lease:
Depreciation on Plant & Machinery and Dies and Moulds given on lease is being provided at the rates worked out on Straight Line Method over the primary period of lease as stated in the Lease Agreement or at the rates specified in Schedule XIV to the Companies Act, 1956 whichever is higher, on Pro-rata basis with reference to the month of commencement of lease period. (c) On Pressure Die Casting (PDC) Dies: