A. BASIS OF ACCOUNTING
The accounts have been prepared on the basis of historical cost. The
Company follows the mercantile system of accounting recognizing income
and expenditure on accrual basis. Accounting policies not referred to
specifically are consistent with generally accepted accounting
B. REVENUE RECOGNITION
Revenue on sale of goods is recognized on dispatches to customers from
pant or stock points as applicable. Sales is inclusive of excise duty.
C. FIXED ASSETS & DEPRECIATION
i) Fixed assets are recorded at cost of acquisition or
construction/erection excluding modvat availed plus incidental expenses
directly attributed to bringing the assets to its working condition for
the intended use.
ii) Depreciation on fixed assets has been provided at the rates & in
the manner prescribed in schedule XIV to the Companies Act, 1956 on
straight line method.
The long term quoted and unquoted investments are valued at cost. The
aggregate market value of long term quoted investments as on 31st March
2001 was Rs.11,32,362/- (previous year Rs.22,25,223/0) representing a
diminution in value of Rs.90,94,308/- (previous year Rs.80,01,447/-) .
In the opinion of the management, the decline is on account of market
force and is not of a permanent nature, hence no provision has been
made for such diminution.
Raw materials, packing materials and stores are valued at cost on FIFO
basis. Finished goods are valued at lower of cost or realizable value.
The valuation of work in progress is made considering certain
percentage of overhead absorption depending upon the stage of
completion as determined by the management.
F. FOREIGN CURRENCY TRANSACTIONS
All transactions in foreign currency are recorded on the basis of the
exchange rate prevailing on the date of transaction. The difference, if
any, on actual payment/ realization is charge to exchange fluctuation
account. Foreign currency current assets and current liabilities are
restated at rates ruling at the year-end. The net loss or gain arising
out of such conversion is dealt with in the profit and loss account.
G. RESEARCH & DEVELOPMENT
Revenue expenditure on research & development is charged to profit and
loss account in the year in which it is incurred. Capital expenditure
on research and development is considered as an addition to fixed
H. RETIREMENT BENEFITS
Contribution to provident fund is made monthly, at a predetermined to
the provident fund authorities and debited to the profit and loss
account on an accrual basis. The Company has an arrangement with Life
Insurance Corporation of India to administer its superannuation and
gratuity schemes. The premium paid/payable are debited to the profit
and loss account on an accrual basis.