I. ACCOUNTING POLICIES: TURNOVER:
Sales are net of excise duty and rebates.
Fixed assets are valued at cost. Land and Building at Sonepat and at
Rasoi were revalued on 30th June, 1986. Subsequent additions to these
units are shown at cost.
In case of Sahibabad , Malanpur and Bawal units depreciation is
calculated at straight line method. All other units the written down
value method has been followed.
Raw material, Components and spare parts are valued at weighted average
basis cost concept. Finished goods and work in progress are valued at
cost. The cost includes material cost plus appropriate share of labour
Long term Investments are valued at cost. Current Investment is valued
at cost or market Value which ever is less.
Contingent Liabilities are not provided for in accounts and are shown
RECOGNISATION OF INCOME AND EXPENDITURE:
Items of Income & Expenditure recognised on accrual basis.
Liabilities in respect of gratuity benefits, Provident Fund and
Superannuation benefits, for its senior employees are provided for by
the company via Gratuity Fund Trust and Superannuation Trust maintained
at LIC. Earned leave has been provided for on actuarial valuation.
RESEARCH AND DEVELOPMENT EXPENSES:
Revenue Expenditure on Research and Development is charged to the
Profit and Loss Account in the year in which it is incurred, while the
capital expenditure is shown as an addition to the Fixed Assets.
TAX ON INCOME:
Current Tax is determined as the amount of Tax Payable in respect of
Taxable income for the year.
Deferred Tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent