Fixed Assets
 Fixed assets are stated at historical cost. The cost includes price,
 duties and taxes, freight, installation cost and other incidental
 expenses.
 
 Depreciation
 Depreciation on all Fixed Assets are provided on straight line method  at the rates prescribed by schedule
XIV to the Companies Act, 1956
 
 Inventories
 Inventories are valued as under:
 
 Raw Materials  -  at landed cost
 Work - in - Process  -  at works/direct cost
 Finished Goods -  at works cost or realisable value, whichever is lower
 Processing cost on customers' material -  at conversion cost
 Scrap -  at realisable value
 
 Investments
 Investments are stated at cost and income thereon is accounted for on
 accrual or receipt, whichever is earlier.
 
 Foreign Exchange Transactions
 Gain/loss arising out of revenue transactions are credited / charged 
 to profit and loss account.
 
 Expenditure During Construction
 Expenditure during construction period is grouped under capital work in progress. Upon commencement of
commercial production, the expenditure is allocated to Buildings and Plant and Machinery in the ratio of
their direct cost.
 
 Income on Lease Transactions
 Income on Lease Transaction is recognised on accrual basis and is in
 accordance with the guidance note on accounting for leases in respect of business concluded during the
year.
 
 Accounting of Works Contract
 Income from Works Contract is accounted on percentage of completion basis.
 
 Retirement benefits
 Contributions to Provident fund, Superannuation fund and Gratuity fund
 to secure Retiral Benefits to Employees are charged to revenue. Leave
 encashment benefits are accounted for on the basis of acturial valuation.