(a) Basis of Accounting:
The Financial Statements are prepared under historical cost convention
on an accrual basis and comply with the accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956.
(b) Fixed Assets:
Fixed Assets are stated at cost of acquisition/construction less
Depreciation is provided on Straight Line Method at the rates
prescribed under Schedule XIV of the Companies Act, 1956. The
Depreciation on Assets has been charged without taking into
consideration the surplus on revaluation of Assets.
(d) Valuation of Inventories:
Raw Materials, Packing Materials, Stores and Work in Process are valued
at cost. Finished Goods are valued at lower of the cost or net
realisable value. Excise Duty on goods manufactured by the Company and
remaining in inventory is included as a part of valuation of finished
(e) Revenue Recognition:
Sales comprise sale of goods and services. Sale of goods is recognized
at the point of despatch of the finished goods to customers. Sales are
exclusive of Excise Duty and Sales Tax.
(f) Customs Duty:
Customs duty payable on Raw Materials, Stores and Spares are accounted
for on clearance of goods from bonded warehouses.
(g) Research and Development Expenses:
Revenue expenditure pertaining to research and development is charged
to revenue in the year in which it is incurred. Capital Expenditure is
treated as forming part of Fixed Assets.
(h) Retirement Benefits:
The Company has created a trust and has taken a group gratuity policy
with The Life insurance Corporation of India for future payment of
retiring gratuities. The premium thereon has been so adjusted as to
cover the liability in respect of all employees at the end of their
future anticipated services with Company.
(i) Income Tax:
The Income Tax is ascertained on the basis of assessable profits
computed in accordance with the provisions of the Income Tax Act, 1961.
(j) Deferred Taxation:
Deferred Tax resulting from timing difference between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing difference are expected to