a) Basis of Preparation of Accounts :
The Company maintains its accounts on accrual basis. Following the
historical cost convention, except for the revaluation of certain fixed
asset, in compliance with the accounting standards specified to be
mandatory by the Institute of Chartered Accountants of India and the
relevant provisions of the Companies Act, 1956. However, certain
claims/expenses which are not ascertainable/acknowledged by the
customers, are not taken into account. In case of interest on delayed
payments towards loans from Financial Institutions, Banks, Sales Tax
Authority which are accounted on cash basis.
b) Fixed Assets and Depreciation :
Fixed Assets are stated at Cost Less Depreciation except office
premises which has been revalued as of 31st March, 1993 on the basis of
the valuation report submitted by approved valuers and are stated at
Depreciation on the fixed assets has been charged on the straight-line
method basis at the rate prescribed in Schedule XIV of the Companies
Act, 1956. Lease rent in respect of Leasehold Land is not written off
proportionately. In respect of to Office Premises, which were revalued
in the earlier year, the incremental annual differential depreciation
on account of revaluation and original cost is being charged to
c) Sales :
Sales are stated inclusive of Excise Duty and Sales Tax as per practice
followed in the past.
d) Inventories :
Raw Materials and work in process are valued at the cost. Trading
goods are valued at lower of cost or market value. Packing Materials
and consumables are charged to expenses as and when purchased.
e) Retirement Benefit :
Leave Encashment, Gratuity are accounted on cash basis.
f) Taxation :
In view of the losses no provision has been made for Income Tax.
g) Liabilities on account of Import :
Liabilities on account of imported raw material are accounted on the
actual liabilities incurred or in case of non-settled liabilities,
these are accounted based on the exchange rate prevailing on the date
of Balance Sheet.