a) Accounting convention
Accounts have been prepared on historical cost convention.
b) Fixed Assets are stated at cost of acquisition inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition.
c) Depreciation is provided as per rates prescribed in Schedule XIV of
the Companies Act, 1956, as under :
Plant and Machinery - Straight line method
Other Assets - written down value method
No provision for Depreciation is made in current year.
d) Inventories are valued as under :
Stores and Spare Parts - Net realisable value.
Work-in-progress (Real Estate) - At Cost.
Unsold Flats - At Cost.
e) Retirement Benefits
Due to closure of the mills, liability is not provided for retirement
benefits namely Provident Fund, Family Pension Fund and Superannuation
Fund to all eligible employees of the Company.
f) Investments are stated at Cost.