A. System of Accounting
The Company adopts the accrual concept in preparation of Accounts.
The Financial statements have been prepared on the assumption of Going
Concern principle based on sales orders on land, notwithstanding the
reduction of operations and erosion of profitability and the net worth
of the Company.
The assets and liabilities are recorded at historical cost to the
Company. These are not adjusted to reflect the changing value in
purchasing power of the money.
The long term investments are stated at cost.
The depreciation is provided on straight line method at rates and in
the manual prescribed in schedule XIV of the Companies Act, 1956. The
Leasehold land is amortised over the life of the lease. No depreciation
is provided on the machinery acquired from the conditional
Grants-in-aid from the Department of Electronics.
E. Valuation of Inventories
The Company has valued its Raw Materials and Packing Materials at cost
net of recoverable taxes and Excise Duty on F-I-F-O basis. The
Work-in-Progress and Finished Goods have been valued at cost including
appropriate manufacturing overheads or at the realisable value
whichever is less. Finished Goods also include Excise Duty Payable.
F. Retirement Benefits
The provision for gratuity for the year is made on actuarial valuation
made by the LIC on the date of the Balance Sheet as per the provisions
of Payment of Gratuity Act 1972 and is funded. The Company's
contribution to Government Provident Fund Scheme and the Employees
Pension Scheme is charged to revenue each year. Provision for Leave
encashment benefits is made on estimated basis.