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

Long Term Investments are stated at cost less provision, if any, for permanent diminution
in their value.
VII INVENTORIES
• Raw Materials, components, stores and spares are valued at cost. However these items
are considered to be realizable at cost if the finished products, in which they will be
used, are expected to be sold at or above cost.
• Work in Progress and finished goods are valued at lower of cost and net realizable
value. Finished goods and work in progress include costs of conversion and other costs
incurred in bringing the inventories to their present location and condition.
• Cost of inventories is computed on FIFO basis. Glass off-cuts are valued at average rate
of Glass of respective thickness or quality.
VIII REVENUE RECOGNITION
• Sales are recorded at net of returns.
• Other income is accounted for on accrual basis.
IX RETIREMENT BENEFITS
• The Company’s contributions in respect of Provident Fund are charged to the profit &
loss account for each period.
• The Company’s contribution to Life Insurance Corporation of India (LIC) for group
gratuity scheme policy is charged off to Profit and Loss account for each period. The
contribution to group gratuity policy is based on values as actuarially determined and
demanded by LIC at the period ended.
• Liability for accumulated earned leave of employees is ascertained and provided for as
per Company Rules, as at the end of the financial year.
X TAXES ON INCOME
• Provision for taxation comprises of Current Income tax, Fringe Benefit Tax and
Deferred Tax. Current Income tax Provision has been made in accordance with the
provisions of the Income Tax Act, 1961.
• Deferred tax for timing differences between the book profits and tax profits for the
period is accounted for, using the tax rates and laws that have been substantively
enacted as of the balance sheet date.
• Deferred tax assets arising from timing differences are recognized to the extent there
is reasonable certainty that these would be realized in future.
• Deferred tax assets are recognized on unabsorbed losses only if there is virtual
certainty that such deferred tax asset can be realized against future taxable profit.
2.) NOTES TO ACCOUNTS FOR THE PERIOD ENDED SEPTEMBER 30, 2007
(1) Provision for Leave Encashment and Gratuity has not been made for this interim period
of accounting.
In respect of Provision for Current Income tax for the period ended 30 th September,
2007, adjustment of Depreciation under Income Tax Act, 1961 alone has been
considered vis–a–vis the book profits for the period. No other disallowances could be
considered as the provision relates to part period of the financial year. Likewise for
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