2010-11 - Grasim

UltraTec
ech Cement Limited
SCHEDULE 21 (Contd.)
intended to be held to maturity. These are accounted on the date of their settlement and realised
gain/loss in respect of settled contracts is recognised in the Profit and Loss Account.
Commodity Hedging
The realised gain or loss in respect of commodity hedging contracts, the pricing period of which
has expired or contracts cancelled during the year are recognised in the Profit and Loss Account.
However, in respect of contracts, the pricing period of which extends beyond the Balance Sheet
date, suitable provision for likely loss, if any, is made in the accounts.
7. Investments:
Investments are classified into long term investments and current investments. Long-term
investments are carried at cost after deducting provisions made, if any, for diminution in value of
investments other than temporary, determined separately for each individual investment.
Current investments are carried at lower of cost and fair value, determined separately for each
individual investment.
8. Inventories:
Inventories are valued at the lower of weighted average cost and estimated net realisable value
except waste/scrap which is valued at net realisable value.
Cost of finished goods and process stock includes cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
9. Depreciation and Amortisation:
Depreciation is charged in the Accounts on the following basis:
(A) Tangible Assets:
(i) Depreciation is provided on the straight-line basis at the rates and in the manner prescribed
in Schedule XIV to the Companies Act, 1956 except for some of assets at the rates based
on the useful life of the assets as determined by the management, which are higher than
the rates specified in Schedule XIV to the Companies Act, 1956, as stated under:
(a) Company Vehicles other than those provided to the employees at 20% per annum.
(b) Roads, Culverts, Walls, Buildings etc. within factory premises at 3.34% per annum.
(c) Computer and Office Equipments at 25% per annum
(d) Furniture and Fixtures – 7 years
(e) Mobile Phones – 3 years
(f) Motor Cars given to the employees as per the Company’s Scheme are depreciated
over the Scheme period.
(ii) Assets acquired up to September 30, 1987, are depreciated at the rates prevailing at the
time of acquisition.
(iii) The value of leasehold land and mining lease is amortised over the period of the lease.
(iv) Assets not owned by the Company are amortised over a period of five years or the period
specified in the agreement.
(v) Expenditure incurred on Jetty is amortised over the period of the relevant agreement
such that the cumulative amortisation is not less than the cumulative rebate availed by
the Company.
(vi) Depreciation on additions is provided on a pro-rata basis from the month of installation or
acquisition and in case of project from the date of commencement of commercial
production, while depreciation on deductions/disposals is provided on a pro-rata basis
upto the month preceding the month of deductions/disposals.
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