i. BASIS OF ACCOUNTING
The Company prepares its accounts on accrual basis except otherwise
stated, in accordance with the normally accepted accounting principles.
ii. FIXED ASSETS AND DEPRECIATION
Fixed Assets are stated at cost of acquisition inclusive of inward
freight, duties, taxes, incidental expenses & other pre-operative
expenditure incurred during the year and trial run period form part of
incidental expenses which are added to the cost of Fixed Assets.
No Depreciation has been provided on Fixed Assets. However, assets
costing up to Rs. 5000/- are written off in the year of purchase.
Investments are held on long term basis and valued at their acquisition
cost. Diminution in value, if any which is of temporary nature is not
Sales comprise Sale of Goods net of discount and goods returns.
v. VALUATION OF INVENTORY
Raw materials -At Cost
Finished Goods & Semi -At Cost or
Finished Goods Net Realisation Value (Which ever is lower)
vi. RETIREMENT BENEFITS
Provision for Gratuity liability & Leave Encashment is made on
Actuarial basis as per Accounting Standard -15 issued by the Institute
of Chartered Accountants of India.
vii. REVENUE RECOGNITION
Interest on investment and other loans & advances is accounted for on
These are disclosed by way of notes in the Balance Sheet. Provision are
made in the accounts in respect of those liabilities which are likely
to materialise after the year end till the Finalisation of the accounts
and have material effect on the position stated in the Balance Sheet.