1. BASIS OF ACCOUNTING:
i) The accounts are prepared based on historical cost except land which
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles. In the accounting policies considerations has been given to
prudence, substances over form and Materially.
iii) The Company follows Mercantile System of accounting and recognises
Income and expenditure on accrual basis except as stated otherwise.
2. FIXED ASSETS & DEPRECIATION :
i) Fixed Assets except land (Which was revalued) are stated at cost
ii) Depreciation is provided on the Straight Line Method at the rates
and in the manner prescribed in schedule XIV to the Companies Act,
1956. Good will and Freehold land are note depreciated.
Stock of Stores and Spares and Packing Materials are valued on weighted
average cost. Raw Materials are valued at cost as determined on FIFO
Sales are accounted net of trade discount. Excise duty (except on
consignment sales) and Sales Tax recovered are not included in Sales.
5. RESEARCH & DEVELOPMENT:
Revenue expenditure on Research & Development (R & D) are charged as an
expense in the year of occurrence. Capital expense on R & D is shown as
addition to fixed assets.
6. FOREIGN EXCHANGE TRANSACTIONS:
Asset and liabilities related to foreign currency transaction remaining
unsettled at the end of the year are translated at contract rates, when
covered by foreign exchange contracts and at year end rate in other
cases. Realisable gains and losses on foreign exchange transactions
other than those relating to fixed assets are recognised in the profit
& loss account. Realisable gain or loss incurred to acquire fixed
assets is treated as an adjustment to the carrying cost of such fixed
7. PRELIMINARY EXPENSES:
Share issue expenses relating to the project is written, off over a
period of five year commencing from the year of commissioning.