a. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS :
i) The financial statements have been prepared in accordance with the
Accounting Standards which are mandatory and specified by the Institute
of Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956,
ii) The Company generally follows accrual concept of accounting.
b. INVESTMENTS :
Investments are accounted for at cost.
C FIXED ASSETS :
Fixed assets are stated at cost of acquisition less accumulated
depreciation except the Building which is stated at its revalued price.
d. DEPRECIATION :
Depreciation has been provided on Straight Line basis al the rates
prescribed in Schedule XIV to the Companies Act, 1956.
e. INVENTORIES :
Raw materials and Semi finished products are carried at cost. Cost is
arrived after adding the expenses incurred such as Octroi, Freight
etc., but excludes the credit under Cenvat and set off against Sales
Tax. Finished goods are valued al cost as declared with excise
department for The purpose of charging Excise Duty plus excise duty
paid, if any.
f. EXCISE DUTY :
It is Companys practice to account for the Excise Duty payable at the
time of despatch of the goods.
g. RETIREMENT BENEFIT :
a) Contribution towards Provident Fund is accounted when the liability
b) Gratuity liability in respect of employees covered under payment of
Gratuity Act, 1972 is worked out by the management on the presumption
that all employees retire at the end of the year and is provided for in
h. MISCELLANEOUS EXPENDITURE :
Right issue expenses are amortised over a period of ten years.