s1. The Company has been consistently following the accrual method in
accounting its income and expenses. The same procedure is followed
this year also except that in the matter of accounting of export
incentives, and gratuity on case basis. The accounting is on the basis
of a going concern concept only.
2. There is no Research and Development activity by the Company and the
allocation of amounts of the cost specifically attributable to Research
and Development does not arise.
3. Revenue from sale transactions is recognised as and when the
property in the goods sold is transferred to the buyer for a definite
consideration. Revenue from service transactions and other sources is
recognised on the completion of the contract and there is no
uncertainty regarding the amount of consideration or collectibility.
4. (a) Sales as reported is exclusive of excise duty, sales tax,
insurance and transport charges.
(b) Export Sales are accounted for at the rate prevailing on the date
which transaction takes place. Gain or Loss arising out of exchange
rate fluctuations is recognished and accounted for on the date of
5. The cost of fixed assets are stated at cost including relevant
direct expenses and less depreciation. Interest on amount spent on
projects upto the date of commencement is added to the cost of fixed
6. a) Depreciation has been calculated at the rate specified in
Schedule XIV of the said act as amended by the Circular No. 14 Dt.
16.12.1993 by the Department of Company Affairs on straight line method
for all assets.
For machinery and electric machinery, depreciation has been provided at
the rate applicable to a continuous process plant as per Schedule XIV
of the Companies Act, 1956.
b) In respect of all assets purchased or sold during the year
depreciation has been provided at the above rates on prorata basis from
the date of purchase including all assets even if the cost is below
Rs.5,000/- or till the date of sale as the case may be.
7) Inventories : Stock of stores valued at weighted average cost, FIFO.
Raw material mixing and process and finished goods valued at cost or
net realisable value which ever is lower and waste at residual Price.
8) The value of modvat benefit eligible has been reduced from the value
of materials and the consumption of materials has been arrived
accordingly and the value of modvat benefit eligible in respect of
capital item is being reduced from the value of capital goods.
9) Investments are shown at cost less permanent diminution in value.
Interest Received on investments and dividend will be accounted in
10) It is the policy of the Company to amortise expenditure incurred on
sales promotion and financial charges etc., for a period of over 10