1 Basis of Accounting
The Financial Statements are prepared in accordance with historical
cost convention and generally accepted accounting principles, thereby
recognizing significant items of Income and Expenditure on accrual
2 Fixed Assets & Depreciation
(a) Fixed Assets are stated at cost including all direct incidental
expenses and pre-operative expenses are also capitalized and
apportioned to fixed assets.
(b) Depreciation on Fixed Assets is provided on straight line method at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956. Assets acquired under lease agreements are written off over
a period of lease proportionately.
(a) Domestic Sales are exclusive of Excise Duty
(b) Export sales are inclusive of Exchange Rate Fluctuation on
Inventories are valued on following basis:
Raw Material At Cost
Finished Goods At Cost
Stocks, Spares & Packing Materials At Cost
Work - In - Progress At Estimated Cost
5 Miscellaneous Expenditure
Quality Testing Fee has been treated as differed revenue expenditure
and is being written off over a period of five years.
6 Foreign Exchange Transaction
Transaction involving Foreign Exchange are recorded at the rates
prevailing on the date of transaction. Exchange rate difference due to
difference between recorded rates and net realized rates is booked in
the respective head of account. The bank balance at the yearend are
booked at the rates prevailing as on the close of the year. However,
other current assets / liabilities continue to be shown at recorded
7 Bonus, Gratuity & Leave Encashment
Bonus, Gratuity & Leave Encashment are accounted on cash basis.
CST Reimbursement claims from NEPZ are recorded on acceptance of