(I) BASIS OF ACCOUNTING :The accounts are prepared in accordance with
applicable mandatory accounting standards under the historical cost
convention and mercantile system of accounting is followed for
recognition of Income and Expenses.
(II) INVESTMENT: Current investments are valued at lower of cost and
fair market value. Long term investments are stated at cost after
deducting provisions made for other than temporary diminution in the
value, if any.
(III) FIXED ASSETS: Fixed assets are stated at cost. Cost comprises its
purchase price, including import duties and other non-refundable taxes
or levies and any directly attributable cost of bringing the assets to
its working condition for its intended use.
(IV) INVENTORIES: Inventories are valued at the lower of cost and net
realizable value. Cost comprises of all costs of purchase, cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
Cost of Raw Material is determined on seasonal weighted average cost.
Cost of stores and spares and finished goods are determined on weighted
(V) BORROWING COST :Borrowing Cost that are directly attributable to
the acquisition .construction or production of a qualifying asset are
capitalized and other borrowing cost are charged to Profit & Loss
(VI) DEPRECIATION -.Depreciation on the Fixed Assets has been provided
in the books as per straight the method at the rates prescribed in
schedule XIV of the Companies Act, 1956.
(VII) SALES:Sales includes freight and handling outwards but is net of
goods returned, rebates and discounts
(VIII) EMPLOYEE BENEFITS:
(i)Salaries, wages, house rent allowances and leave encashments are
accounted for on accrual basis.
(ii)Liability for employees'' gratuity is accounted for on the basis of
contribution determined by L.I.C. under their Group Gratuity Cash
(IX) Prepaid expenses are proportionately accounted for on time basis
in respect of insurance premium.
(X) Insurance claims are accounted for on the basis of claims filed
with the Insurance Company and adjustments arising due to short/excess
received in such claims are made in the year the claim is finally