1. Accounting System :
The Company follows the concept of accrual system of accounting for the
preparation of accounts except in respect of the following :
A. Interest of delayed payments/receipts
B. Commission on sales which are accounted on cash basis.
2. VALUATION OF INVENTORY :
Raw Materials, Work-In-Progress, Finished Goods & Trading Stock are
valued at lower of cost or market value. The cost of ascertained on
the basis of absorption costing method, including labour and relevant
3. FIXED ASSETS :
Fixed Assets are stated at cost of acquisition net or modvat benefit
less depreciation. The depreciation on Fixed Assets is provided at the
rates specified in Schedule XIV of the Companies Act, 1956, under
Straight Line method on prorate basis.
4. MODVAT BENEFIT :
Modvat Benefit is accounted on accrual basis on purchase of materials.
5. SALES :
Sales are recorded net of Sales Tax but including Excise Duty in Profit
and Loss Account.
6. CONTINGENT LIABILITY :
Contingent Liabilities are not provided for in the accounts and are
shown separately in Notes to the Accounts.
Claims not acknowledged as debts for Rs. 18003.70 being in dispute
during the previous year.
7. PRELIMINARY EXPENSES :
Preliminary Expenses are written off over a period of Ten Years.
Public Issue Expenses are accounted separately and are written off over
a period of Five years.
Accounting Policies not referred to specifically are consistent with
generally accepted accounting principles.