Claro India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

The Company follows Mercantile system of accounting recognising Income and expenses on accrual basis. The accounts are prepared on historical cost basis and as a going concern concept. Accounting Policies not referred to, specifically otherwise are consistent with generally accepted accounting principles and with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

FIXED ASSETS :

Fixed assets are stated at their cost of acquisition including other expenses related to installation.

The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of impairment based on external/internal factorors. An impairment loss is recognized wherever the carrying amount of asset exceeds its recoverable amount which represents the greater of the net selling price and Value is use of the assets. Based on the review, the management concluded that there was no indication of any impairment as at the Balance Sheet date.

DEPRECIATION AND AMORTISATION

(i) Leasehold land is being amortised over the period of lease.

(ii) Depreciation on fixed assets has been provided on Straight Line Method as provided in section 205(2)(b) of the Companies Act, 1956 read with Schedule XIV of the Act as amended vide Circular No. 14 dated 20th Decem- ber, 1996 issued by the Department of Company Affairs on pro-rata month basis with reference to the date of installation. Assets having value less than Rs.5,000/-have been written-off in the year of installation.

REVENUE RECOGNITION

Revenue from sale of goods is recognised upon passing of title to the Customers which generally coincides with the delivery. Other incomes are accounted on accrual basis except Income of which quantum of accrual cannot be ascertained.

INVENTORIES

Items of inventories are valued on the basis given below :

i) Raw Material At Cost

Stores & Spares At Cost

Packing Material At Cost

ii) Finished Goods At lower of the Cost or Market Price



DEFERRED TAX

1) In view of the huge losses incurred by the Company provision of AS- 22 related to " Taxes on income" are not considered.