sejal architectural glass limited - Securities and Exchange Board of ...

NOTES TO RESTATED PROFIT AND LOSS AND RESTATED ASSETS AND LIABILITIES
1.) SIGNIFICANT ACCOUNTING POLICIES
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ANNEXURE – III
I BASIS OF ACCOUNTING
The Financial statements are prepared under the historical cost convention, on an accrual
basis to comply in all material aspects and in accordance with the applicable accounting
standards issued by the Institute of Chartered Accountants of India and referred to in
Section 211(3C) of the Companies Act, 1956.
ACCOUNTING POLICIES
The same set of accounting policies are followed in the interim financial statements for the
period ended on September 30, 2007 as those followed in the preceding financial year
except otherwise stated herein this statement.
II FIXED ASSETS
Fixed Assets are stated at historical cost (net of cenvat Credit /Sales Tax set off /VAT Set
off) less accumulated Depreciation/ amortization thereon. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its
intended use and also comprises of borrowing Costs attributable to acquisition and
construction of assets up to the date when such asset is ready for its intended use,
satisfying the parameters set by the management. The assets, though installed and
commissioned are not capitalized till the required results are obtained to the satisfaction
of the management of the company.
III DEPRECIATION
• Depreciation is provided on Straight Line Method at the rates and in the manner
specified in the Schedule XIV of the Companies Act, 1956.
• Depreciation on the Fixed Assets added / disposed off / discarded during the period has
been provided on pro-rata basis with reference to the month of addition / disposal /
discarding.
• Depreciation on the amounts capitalized on account of foreign exchange fluctuation is
provided prospectively over residual life of the assets.
IV BORROWING COST
• Borrowing Costs attributable to acquisition and construction of qualifying assets are
capitalized as a part of the cost of such asset up to the date when such assets is ready
for its intended use.
• Other borrowing costs are recognized as an expense in the period in which they are
incurred.
V FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currencies are recorded at the rate of exchange
prevailing on the date of transaction. Current assets and current liabilities in foreign
currency are stated at the period ended closing rates. The resulting exchange gain/loss is
recognized in the profit and loss account. Exchange differences attributable to the
acquisition of the fixed assets outside India are adjusted to the cost of the respective
assets.
VI INVESTMENTS