1. Significant Accounting Policies
A. Basis of Accounting:
The financial statements are prepared on historical cost convention
basis. Income and expenditure are recognized on accrual basis except in
the case of significant uncertainty. These statements are drawn up In
accordance with the generally accepted Accounting Principles and the
Accounting Standards referred to in Section 211(3C) of the Companies
B. Fixed Assets:
The Fixed Assets including those on lease are stated at cost of
acquisition/construction less accumulated depreciation /amortisation.
C. Debtors & Other receivables:
These are stated at book value less provision for debts
doubtful/difficult to recover, if any.
The Inventories are valued at lower of weighted average cost or net
realizable value. Finished goods are valued inclusive of excise duty.
Include excise duty recovered.
F. Excise Duty:
During the year Excise duty Is accounted as and when it is paid.
The cost of lease rights of land is amortised over remaining period of
lease. The depreciation on other assets is provided from this year on
written down value method, at the rates and in the manner prescribed
under schedule XIV to the Companies Act, 1956.-Refer note 5 for the
H. Retirement Benefits:
Provident Fund cost Is accounted as per the provisions of the said Act.
Gratuity and superannuation cost is accounted as per the amounts
payable to LIC under respective schemes. Leave encashment cost is
accounted as per arithmetical calculation of the entitlement at the end
of the year.
I. Income Tax:
Income Tax liability for the year is accounted on the basis of
chargeable income for the year under Income Tax Act at the applicable
rates of tax. Net change in the deferred tax asset or liability in the
year Is stated separately.
Deferred tax assets and liabilities are recognized for the future tax
consequences of time difference between the values of assets and
liabilities as per books and their respective tax bases. Deferred tax
asset is recognized to the extent of incremental Deferred tax liability
arising up to the end of the year. The effect on deferred tax asset and
liability of a change in tax rate, is recognized in the year of
enactment of the change.
J. Earning per share:
The Basic and Diluted earnings/loss per equity share ore reported in
accordance with AS-20, Earning per share. Basic earning/loss per equity
share is computed by dividing net profit/loss after tax by the weighted
average number of equity shares outstanding for the period. Diluted
earning per equity share is computed using the weighted average number
of equity shares and diluted potential equity shares outstanding during