Alternative Basis for providing Depreciation under Section 205(2)(c) of the Companies Act, 1956.

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..... Shastri Bhavan, New Delhi. Dated, the 21st of February, 2003 To All Regional Directors, All Registrar of Companies Subjects: Alternative Basis for providing Depreciation under Section 205(2)(c) of the Companies Act, 1956. ***************** Sir, The request made by some Companies, particularly companies engaged in production of steel to prescribe an appropriat .....

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..... edule-XIV to the Companies Act. 3. The "Unit of Production" method of charging depreciation also seeks to compute depreciation on estimated production basis. This may tend to a manipulation of profits based on a particular set of assumptions and technical opinion. 4. In view of the above facts, this Department hereby clarifies that companies may depreciate the assets on "Straight Line Method" .....

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