EXCEL CROP CARE LIMITED C O N T E N T S - BSE

ANNUAL REPORT 2009-10 Gujarat Narmada Flyash Company Ltd
SCHEDULE 7
SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS
1. Basis of Preparation of Accounts:
The accounts are prepared on historical cost convention in accordance with applicable
mandatory accounting standards and other generally accepted accounting principles in
conformity with the statutory requirements.
2. Fixed Assets:
Fixed assets are stated at historical cost where cost includes all expenses directly attributable
to make the asset ready for use.
3. Depreciation:
Depreciation on fixed assets has been provided on Straight Line value method under
Schedule XIV to the Companies Act, 1956.
4. Revenue Recognition
Income and expenditure are recognized and accounted on accrual basis, except in case of
significant uncertainties.
5. INVESTMENTS:
Investments have been stated at cost. However , the company has not provided by way of
making necessary provisions for diminution in the value of long term investments in the line
with accounting standards laid down by the ICAI. However in absence of market quotation as
on 31.03.2010. We are unable to comment or the adequacy of the provision for diminution in
market value of shares.
6. RETIREMENT BENEFITS:
As informed and explained to us that the company is not liable or retiring benefits hance not
provided for the retirement benefits by way of gratuities payable to the employees on
retirement in accordance with the accounting standards laid down by ICAI.
7. AMORTISATION OF MISCELLANEOUS EXPENDITURE:
The preliminary expenses incurred in connection with the incorporation of the company and
raising share capital are amortised over a period of 10 years.
8 VALUATION OF INVENTORIES:
The closing stock has been physically taken and certified by the management
including the quality of non/slow moving items and valued at historical cost.
9 Taxes on Income:
Taxes on Income comprise of Current Tax and Deferred Tax in accordance with Accounting
Standard (AS) 22, “Accounting for Taxes on Income” issued by the Institute of Chartered
Accountants of India.
Current tax is being measured at the estimated amount payable to the taxation authorities.
Deferred tax is measured at rates substantively enacted by the balance sheet date.
10 ACCOUNTING FOR EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES:
There is no transaction involved in foreign exchange.
11. Earning Per Share:
The company reports basic and diluted earnings per share in accordance with
Accounting Standard (AS) 20 – Earning per Share issued by the Institute of Chartered
Accountants of India. Basic Earning per share are computed by dividing the net profit
or loss for the year by the weighted average number of equity share outstanding during
the year. Diluted earnings per share is computed by dividing the net profit or loss for
the year by the weighted average number of Equity Shares outstanding during the year
as adjusted for the effects of all dilutive potential equity share, except where the results
are anti-dilutive.