(a) Basis of Accounting
Financial Statements are prepared under historical cost convention on
accrual basis except those disclosed in notes on accounts.
(b) Revenue Recognition
Sales are recognized on dispatch of materials to customers.
(c) Employee Benefits
i) Defined Contribution Plan:
Contribution to Provident Fund, which is defined contribution
retirement plan, is charged to the Profit & Loss account in the period
in which the contributions are incurred.
ii) Defined Benefit Plan:
Retirement benefits in the form of Gratuity and leave encashment are
determined on actuarial valuation using projected unit credit method at
the balance sheet date and are charged to Profit & Loss account.
(d) Fixed Assets
(i) Fixed assets are stated at cost of acquisition inclusive of
freight, duties and incidental expenses, etc.
(ii) Depreciation of fixed assets has been charged on Straight Line
Method at the rates and in the manner, prescribed under Schedule XIV of
the Companies Act, 1956.
Investments, if any, are stated at cost.
(i) Inventories of Raw Materials, Stores & Consumable are valued at
(ii) Inventories of Work in Process are valued at lower of cost and net
(iii) Inventories of Finished Goods are valued at cost or market value
whichever is lower.
(iv) Saleable dust and scrap are valued at estimated realizable value.
(g) Foreign currency translation
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date. Exchange differences
The company accounts for exchange differences arising on
translation/settlement of foreign currency monetary items as below:
(i) Transactions reported in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction or that
approximates the actual rate at the date of transaction.
(ii) Monetary items denominated in foreign currencies at the year end
are restated at year end rates.
(iii) Any income or expenditure on account of foreign exchange
difference either on settlement or on translation is recognized in the
profit and loss account
(h) Contingent Liabilities
Contingent liabilities are not provided for in the books of accounts
and are disclosed by way of note to the accounts.
(i) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable Income for the period. Deferred Tax is recognized subject to
considering prudence on timing differences being the differences
between taxable Income and Accounting Income that originate in one
period and are capable of reversal in one or more subsequent period.
Deferred Tax Asset for the current year has been created taking into
account the unabsorbed depreciation and carry forward of losses of