1. Basis of preparation of Financial Statements
i. As reported in Para 3.a of the Auditors Report, the Financial
Statement have been prepared under the historical cost convention, and
as going concern in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
ii. The Company follows the mercantile system of accounting and
recognises Income and Expenditure on accrual basis, except where
otherwise stated. Refer para-I 6. and 1.10 of this Schedule.
2. Fixed Assets
Fixed Assets are carried at cost of acquisition/construction.
Depreciation is provided for on Fixed Assets, except on land on
straight line method at the rates prescribed by Schedule XIV of the
Companies Act, 1956 on pro-rata basis from the month of
addition/installation. (Refer para 11.5 of this schedule)
Investments are carried at cost
i. Raw materials (Waste Paper and Chemicals), Coal, Stores, consumables
and packing materials are valued at cost.
ii. Raw materials in transit are carried at cost.
iii. Work in Process is valued at Estimated net realisable value.
iv. Finished goods are valued at the lower of cost or net realizable
i. Sales includes Excise levies but excludes Sales tax.
ii. Discounts, rebates and incentives are accounted for as per the
terms fixed or as per, the prevailing practice and the claims for price
and quantity variations and the charges receivable/payable on delayed
payment are accounted for in the year when the same are established.
7. Foreign Currency Translations
i. The Foreign Currency translations are made at the rate of conversion
prevailing on the date on which the transaction is recognised.
ii. Closing Balances of current assets and current liabilities are
converted at the rates prevailing at the year end. The gains/losses on
account of difference in Foreign Exchange, have been recognised in the
financial statements by way of adjustments in the respective needs of
iii. Cash balance in foreign currency carried as per the rate
prevailing on the year end.
i. Cenvat benefit on Raw materials, Chemicals and Packing Materials is
accounted for at the time of consumption by reducing the same from the
ii. Cenvat benefit on Capital goods is recognised upon commissioning
of such capital goods by reducing the same form the cost of the
9. Financial Expenses
Billing discounting charges are accounted for on time accrual basis.
10. Special Capital Incentive
Special Capital incentive receivable from the Government of Maharashtra
is accounted for on receipt basis.
11. Retirement benefits
Retirement benefits are provided on accrual basis, based on fair
estimation. (Refer Para II. 4 of this Schedule).