i) Basis of Accounting
The Company adoptes accrual basis in the preparation of accounts.
ii) Recognition on Incomes/Expenses
Sales of Sulphuric Acid and Fertilizers are accounted for on their
despatch to customers. Income from interest and subsidy received are
accounted for on accrual basis. Insurance claims are accounted for on
The Company provides for all known expenses except medical
reimbursement and leave encashment. Which are accounted on actual
iii) Fixed Assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Cost of
acquisition on construction is inclusive of all the related expenses.
The Buildings and Plant & Machinery are stated at the value as
determined in the Revaluation Report as at 30th September, 1992.
No Depreciation on Factory Building & Plant & Machinery has been
charged as the same has not been put to use during the year under
audit. Depreciation on Non Factory Building, Furniture & Fixture,
Vehicle and other. Fixed Assets has been provided on the Straight Line
Method, on Single Shift Basis at the rates and in the manner specified
in schedule XIV of the Companies Act, 1956 as amended up to date.
The Depreciation on the increased value of Non Factory Building due to
revaluation done on 30th September, 1992 has been reduced from
Raw Material are valued at cost. There are no finished goods and the
disclosure of method of Valuation does not arise.
v) Miscellaneous Expenditure
Capital issue Expenses are written off equally over a period of ten