A. The accounts of the Company have been prepared on Historical Cost
convention and are in accordance with the applicable Accounting
Standards and generally accepted principles of accounting.
B. Except as otherwise stated all items of revenue income and expenses
are accounted for under the natural heads of accounts. These are
accounted for on accrual basis except in the case of :
i. Insurance claims, which are recognised only when the claim amount is
ii. Interest on Deposits, Security Deposits, and Book Debts, which is
accounted for on actual receipt.
C. Dividends on investment are accounted for on receipt basis.
D. Investments are stated at cost.
E. Sales means Sale Price including Excise Duty, if applicable, but
does not include Sales Tax.
F. Gratuity liability to staff to be accounted for on actual payment
G. Depreciation on fixed Assets is provided on Straight line Method at
the application rates provided in schedule xiv to the Companies Act
1956. Deprecation on additions have been calculated on pro-rata basis.
H. Inventories are valued as under :
i. Raw Materials : At Cost
ii. Finished Goods and Semi finished Goods : Market Price
iii. Stores Spares and Packing Materials : At Cost
I. Consumption of raw Material includes stores & stocks and packing
J. Fixed Assets are stated at Cost. The cost of an Asset means and
includes the purchase price and directly attributable expenses incurred
for bringing the asset to working condition and also includes
appropriate portion of incidental expenses and financing costs relating
to borrowed funds attributable to the fixed assets up to the date the
asset is put in use.
K. Claims by/against the company arising on any account are provided in
the account on acceptance/settlement basis.
L. Miscellaneous Expenditure
i. Preliminary and share Issue Expenses are amortized over a period of
ii. The Deferred Revenue Expenditure shall be written off over a period
of five years.