SIGNIFICANT ACCOUNTING POLICIES (Illustrative)

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..... The financial statements are prepared on the basis of historical cost convention, unless otherwise stated and on the accrual method of accounting. 2. INVESTMENTS 2.1 Investments classified as long term investments are carried at cost. Provision for decline, other than temporary, is made in carrying cost of such investments. 2.2 Investments classified .....

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..... italized at values stated, by corresponding credit to Capital Reserve. 4. DEPRECIATION 4.1 Depreciation is provided on straight-line method as per rates specified in the Income-tax Act, 1961 except depreciation on cost adjustments arising on account of conversion of foreign currency liabilities for acquisition of fixed assets, which is amortized over the residual life o .....

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..... s a deduction from the cost of the related assets. 7.3 Government grants/subsidy are accounted on realization basis. 8. FOREIGN CURRENCY TRANSACTIONS 8.1 Transactions denominated in foreign currency are accounted at the exchange rate prevailing at the date of the transaction. 8.2 Current assets, foreign currency loans and current liabilities ar .....

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