Set out hereunder are the significant accounting policies adopted by
the company in the prepration of the accounts for the year ended 31st
March, 2012. There is no material change in accounting policies of the
Method of Accounting
The company follows Mercantile System of accounting
Stock of Raw Material, Stores, Spare & Packing Material Stated at cost.
Finished goods, work in Progress and Scrap are valued at estimated cost
(excluding excise duty) or realizable value, whichever is lower.
Depreciation has been calculated on written down value method at the
rates given in schedule XIV of the Company Acts, 1956.
Provision has been made in the books for accruing liability under the
payment of gratuity act 1972 to the employees on their future
retirement or termination of service.
The premium pertaining to the year is charged against the revenue of
the year. Insurance Claim lodged by the company will be adjusted as and
when the final amount will be determined by the insurance companies.
a) Sales are stated net of return, rebate & discount and excluding
b) Services income is recognized when the services are rendered.
c) Scrap is accounted for on sales basis.
d) Interest income is recognized on accrual basis.