A. ACCOUNTING CONCEPTS
The company follows mercantile system of accounting, recognising income
and expenditure on accrual basis, unless otherwise stated herein
after. The accounts are prepared on historical cost basis as a going
concern and are consistent with generally accepted accounting
B. FIXED ASSETS & DEPRECIATION
(i) Fixed Assets are stated at historical cost of acquisition or
construction plus other incidental expenses less depreciation.
(ii) Depreciation is provided on fixed assets on the Straight Line
Method at the rates prescribed in Schedule XIV of the Companies Act,
(iii) On additions/deletions the depreciation is charged on pro-rata
basis with reference to month of addition/deletions.
(iv) The company has on the basis of technical opinion treated all the
plant and machinery as continuous process plant.
Sale of SSP includes freight and subsidy, sale of Sulphuric Acid &
Oleums is net of excise duty, sales tax, rebate etc.
(i) Finished goods are valued at lower of cost or net realisable value.
(ii) Raw and packing materials are valued at cost.
(iii) Value of stock of Sulphur in pipeline and work in process of all
products is ignored for the purpose of inventory having regard to the
concept of the materiality and difficulty of quantifying such stocks
Investments are stated at cost.
F. MISCELLANEOUS EXPENDITURE WRITTEN OFF
(i) Preliminary expenses and public issue expenses are written off
equally over ten years.
(ii) The cost of catalysts is being amortised on the basis of their
useful life as technically assessed.
G. CONTINGENT LIABILITIES
These are not provided for but are disclosed by way of notes on
The Gratuity is payable on cash basis.
I. FOREIGN CURRENCY TRANSACTION
The Foreign Currency Loans from ICICI Ltd., was obtained under the
Exchange Risk Administration Scheme (ERAS), the liability thereof is
reflected at the exchange rates prevalent on the date of conversion
made at the time of payment by ICICI Ltd.,