1. Method of Accounting: The Accounts of the company are prepared
under the historic cost convention and on the accounting principal of
going concern in accordance with applicable accounting standard except
where stated otherwise. For recognition of income and expenses,
mercantile system of accounting is followed except stated Otherwise.
2. Fixed Assets & Depreciation: All fixed assets are stated at cost of
acquisition and/or Construction less accumulated depreciation.
Depreciation is provided on the strait line method at the rates
specified in schedule XIV of the Companies Act, 1956.
3. Inventory Valuation: Stock in trade comprising of raw materials,
finished goods and work in progress are valued at cost or net
realizable value, which ever is lower and is on the same basis as was
in the preceding year. Stores and spares are treated as consumed at the
time of purchase.
4. Sales: Sales is accounted net of sales tax.
5. Contingent Liability: Contingent Liabilities determined on the
basis of the available information.
6. Investments: Investments are stated at cost.
7. Miscellaneous Expenditure: Consistent to the accounting policy
adopted last year, preliminary and public issue expenses are note
amortised during the year.
8. Taxation: The provision for tax made during the year, is based on
the assessable profits of the company computed in accordance with
provisions of the Income- Tax Act, 1961.
9. Retirement Benefits: These are accounted on cash basis.