01. Basis of Accounts
The Financial Statements are prepared on Historical Cost Convention and
en accrual basis except Retirement benefits like Gratuity which is
accounted for on cash Basis.
02. Fixed Assets
Fixed Assets are stated at cost cf acquisition, construction and
improvement made which is inclusive of freight and taxes.
Depreciation on Fixed Assets has been provided on written down value at
the rates prescribed in Schedule-XIV as amended by notification dated
at 16th December, 1993 to the Companies Act, 1956.
Finished goods are valued at average cost of production and Raw
Materials are valued at average cost.
05. Excise Duty :
Excise Duty payable on goods kept in the factory are neither included
in the expenditure nor it is taken into account for valuation of
closing stock. it is accounted at the time of clearance of goods from
the Factory. This practice is consistently followed by the Company and
has no impact on Profit & Loss. Modvat Credits in respect of Raw
Materials are taken into account at the time of Purchase of Raw
Material (to the credit of the respective purchase and utilised for
payment of excise duty on goods manufactured).
06. Deferred Tax :
Incoma Tax Expenses is accounted for in accordance with AS-22
Accounting for Taxes on Income which include Current Tax and Deferred
Taxes. Deferred Tax reflects the impact of current Year timing
difference between Taxable Income and Accounting Income for the Year
and reversal of timing difference of earlier Years. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future Taxable income
will be available against which such Deferred Tax Assets can be
07. Accounting Policies not referred to otherwise are consistent with
generally accepted accounting principles.