1. Basis of Accounting
The financial statements are prepared on historical cost convention on
accrual basis as a going concern in accordance with the generally
accepted accounting principles in India and the provisions of the
Companies Act, 1956.
2. Fixed Assets
Fixed Assets are stated at original cost of acquisition. The cost of an
asset comprises of its purchase price less of excise modvat and any
directly attributable cost of bringing the asset to working condition
for its intended use.
Depreciation on fixed assets is provided on straight line method at the
rates prescribed in the amended schedule XIV of the Companies Act,
4. Investments Investments are stated at cost
Inventories are valued at the lower of cost or estimated net realisable
value. Cost of finished goods and work-in-process include cost of
material, direct labour and an appropriate portion of overheads. Cost''s
determined using First In First Out (FIFO) Method.
6. Retirement Benefits
Gratuity is accounted on payment basis. Leave salary is accounted on
Tax expense comprises current tax and deferred tax charge/credit. The
deferred tax charge/credit is recognised using current tax rates.
Deferred tax assets/liabilities are reviewed as at each Balance Sheet
8. Provisions. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the