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Notesto the accounts 31st March, 20091. SIGNIFICANT ACCOUNTING POLICIESA. Basis of AccountingThe accounts of the Company are expressed in United States Dollar, prepared under the historical cost convention.B. Sale of GoodsSale of Goods comprise the invoiced value of goods sold. All Rental Income and Income from Services rendered are shown separately.C. 1) Depreciation of Fixed AssetsDepreciation of fixed assets is calculated on the straight-line method to write-off the cost of assets at the end of theiroperational lives.The estimated useful lives of the assets are as follows:Motor vehicles & motor cycles 5 yearsComputer Softwares4 yearsOffice equipment5 yearsTools4 yearsOffice Furniture & Fittings 5 yearsRental Machines5 years2) Amortisation of Development of Leased Assets Depreciation of leased Assets were amortised over five Years.D. TaxationTaxation is provided in the Accounts as and when they are deducted on receipt and on residual profit, if applicable, as per theconventional procedure followed in the Host Country.E. Foreign Currency ConversionMyanmar Kyats transactions have been converted into United States Dollars at the rates of exchange ruling at the date ofthe transactions. Exchange differences are accounted in the Profit and Loss Account.2. PRINCIPAL ACTIVITIESThe principal activities of the Company are to carry out the business of Earthmoving and related Equipment, Generator Sets, Spare partsand providing services for the Equipments and to operate Rental fleet of Earthmoving Equipment and Generator Sets.3. REGISTERED ADDRESSThe registered address of the holding company which is also its ultimate holding Company is as follows:-TIL LTD, 1, Taratolla Road, Garden Reach, Kolkata -700024, India.4 SECTOR ANALYSIS2007-2008-US$ 2007-2008-RSA. Prime Products 1,493,507 69,373,400B. Spare Parts & Accessories 5,400,604 250,858,0566,894,111 320,231,4565 OTHER INCOME2008-2009-US$ 2008-2009-RS 2007-2008-US$ 2007-2008-RSMiscellaneous Income 229,384 10,654,887 133,391 5,352,981Profit on Disposal of Assets 16,570 769,677 120,125 4,820,616245,954 11,424,563 253,516 10,173,5976 FIXED ASSETSLeaseholdBuildingMotorVehicles& CyclesOfficeFurniture& EquipmentComputerSoftware& ToolsRentalEquipmentCostAt begining of Year US$ 567,281 727,069 756,119 1,135,754 2,037,213 5,223,436RS 26,350,202 33,772,355 35,121,728 52,755,773 94,628,544 242,628,602Additions US$ - 33,276 646 226,512 787,525 1,047,959RS - 1,545,670 30,007 10,521,482 36,580,536 48,677,696Disposal US$ - - (367) - (352,363) (352,730)RS - - (17,047) - (16,367,261) (16,384,309)Writeoff US$ (2,230) (7,095) (9,325)RS - - (103,584) (329,563) - (433,146)At end of Year US$ 567,281 760,345 754,168 1,355,171 2,472,375 5,909,340RS 26,350,202 35,318,025 35,031,104 62,947,693 114,841,819 274,488,843WIP Construction US$ 6,556RS 304,526At end of Year Total US$ 567,281 760,345 754,168 1,355,171 2,472,375 5,915,896RS 26,350,202 35,318,025 35,031,104 62,947,693 114,841,819 274,793,369AccumulatedDepreciation/AmortisationAt begining of Year US$ 214,985 524,563 711,109 866,553 734,324 3,051,534RS 9,986,053 24,365,951 33,031,013 40,251,387 34,109,350 141,743,754Disposal US$ - - (361) - (23,527) (23,888)RS - - (16,768) - (1,092,829) (1,109,598)Write-off US$ - - (2,172) (7,073) - (9,245)RS - - (100,889) (328,541) - (429,430)Total