The accounting policies followed by the Company are consistent with the
accounting principles in general.
B) SYSTEM OF ACCOUNTING
The Company follows accrual system of accounting.
C) VALUATION OF INVENTORIES
Raw Material and consumable stores etc. are valued at cost on FIFO
basis. Work-in-Progress is valued at estimated cost. Stock of Finished
Goods are valued at cost or market value whichever is lower.
D) FIXED ASSETS/TRANSLATION OF FOREIGN CURRENCY LOANS (for acquisition
of fixed assets)
- Fixed Assets are capitalised at cost inclusive of freight, duties,
taxes and all incidental expenses related thereto and net of Mod vat
- Expenditure related to and incurred during implementation of the
project is included under capital work-in-progress and the same is
capitalised under the appropriate heads on completion of the project.
- All fixed assets are valued at historical cost. Adjustment arising
from foreign exchange rate fluctuation relating to borrowing
attributable to the fixed assets are capitalised.
F) FOREIGN EXCHANGE TRANSACTIONS
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the date of the transaction. Current assets and current
liabilities are translated at year end exchange rates and the
profit/loss so determined and also the realised exchange gains/losses
are recognised in the Profit & Loss Account.
Depreciation is provided in accordance with provision of and as per
rates prescribed under Schedule XIV of the Companies Act, 1956 on
Straight Line Method.
- The Foreign Exchange Fluctuations up to the end of the current year
are adjusted in cost of the fixed assets. Depreciation is provided on
revised unamortized cost of assets after adjusting Foreign Exchange
H) SHARE ISSUE EXPENSES
Share Issue Expenses are written off in ten equal annual instalments.
Provision on account of gratuity payable to employees is made on the
basis of the amount payable as per me Payment of Gratuity Act, 1972.
J) LEAVE ENCASHMENT
Provision is made for accumulated leave at the year end for which the
employees are entitled to as per Company's Rules.