Page 14 - BALANCE SHEET MGT_001(1)

5 Capital Work in Progress
Capital work in progress includes cost ofassets at sites, construction expenditure, advances made
for acquisition of capital assets, interest on funds deployed on capital work in progress and other
indirect preoperative expenditure incidental and related to acquisition of assets.
5. Valuation of lnventories
The stock of vehicle chassis is valued at the purchase price of chassis.
Other inventories are valued at cost price.

ln respect of the Portfolio purchases the value of stock is recognized only in respect of
repossessed vehicles on an estimated basis.

7 Sundry Debtors, Loans and advances

The sundry debtors, loans and advances are unsecured but considered good and as such no
provision for bad debt has been made and the sundry debtors are subject to reconciliation and
set off with sundry creditors in respect of advance booking and actual billing of vehicles. The
petty balance of such debtors is, on the request of purchaser or on the consideration of regularity

of payment of the installment, treated as discount or incentive to the purchaser.

8. Retirement Benefits

The company has not introduced the scheme of gratuity for its employees and as such provision

for gratuity has not made in the account. The same shall be taken into account as and when the
scheme is introduced or when the actual payment is made.

9. Prior period/Extra Ordinary items

All expenses or income exceeding Rs 50,000/ relating to the prior period are disclosed rn the
accounts' Any income/expenditure less than Rs. 50,000/ is appropriately considered as current
year's income/expenditure.

10. Events occurring after Balance Sheet Date
Events occurring after Balance Sheet date have been considered in the preparation of financial
statements.

11. Contingenttiabilities

Contingent liabilities, which are considered significant and material by the company, are
disclosed in the Notes to Accounts

M.G.T. Motors A^. Ltd.
M.G.T. Motors Pvt. Ltd.

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