The accounts are prepared on accrual basis under the historical cost
conventions and in accordance with the generally accepted accounting
principles. However, Bonus and gratuity payable to the employees is
accounted for in the year of actual payment.
(b) Valuation of Inventory
Stocks are valued at cost or estimated realizable value as decided by
(c) Valuation of fixed assets:
Fixed Assets are valued at cost of acquisition less accumulated
depreciation. Cost of acquisition includes freight, duties, taxes and
incidental expenses attributable to bringing the same to their working
Depreciation is provided on straight line method as per rates
prescribed in Schedule XIV of the Companies Act, 1956.
(e) Amortisation of Expenses:
Share issue expenses are written off over a period of ten years.
(f) Retirement Benefits:
Contribution to Provident Fund are accounted for on actual liability
basis. Gratuity & Leave Encashment payable to ex-employees is accounted
for as and when actually paid.
(g) Borrowing Cost:
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets are capitalized as part of costs of such
assets. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale.
All other Borrowing Costs are recognized as an yawn in the period in
which they are incurred.