1. Accounting Convention
The Financial Statement are prepared under the historical cost convention in accordance with applicable
accounting standards and relevant presentational requirements of the Companies Act, 1956.
2. Fixed Assets and Depreciation
All Fixed Assets are stated at cost of acquisition less depreciation.
Depreciation on building and plant & machinery has been provided on straight line basis, as per rates
specified in Schedule XIV of the Companies Act, 1956 and on all other assets on W.D.V. basis as per rates
specified in Schedule XIV of the Companies Act, 1956.
3. Investment are stated at cost.
The effect of marker fluctuations is not being considered.
Sales of goods is recognised at the point of despatch of finished goods
to the customers. Sale value is inclusive of Excise Duty paid on the clearance of Finished Goods.
Scrap sale is accounted for on sale basis.
6. Stock has been valued as under :
i. Raw Material : Valued At Cost (Monthly Weighted
ii. a. Finished Goods : (At Lower of Cost or Market Price)
b. Work in Process : (At Cost)
iii.Waste : At Realisable Value
iv. Stores, Spares and Components : At Cost
7. Excise Duty
Excise Duty payable on Finished Goods shall be accounted for as and when the materials is cleared from the
8. Modvat in respect of Raw Materials has been credited to Raw Material Account, on Machinery has been
credited to respective Machines and in respect of stores etc. has been credited to stores account.
10. Retirement Benefits
The provision for Gratuity have been made on the basis of actuarial valuation done by LIC and payment made
to the approved fund have been
charged to the revenue account of the company.
11. The accounts of the company have been prepared on a going concern
12. Prior Period and Extra Ordinary Items and changes in accounting policies having Material Import on the
financial affair of the company,
if any, are disclosed.
13. Material events occurring after the date of Balance Sheet are taken into congnisance.