These Accounts have been prepared on historical cost basis. All
expenses and income to the extent considered payable and receivable,
unless stated otherwise, have been accounted for on Mercantile basis.
ii. Fixed Assets including Intangible assets and Depreciation
Fixed Assets are stated on cost basis including the cost of
installation where incurred. Depreciation on fixed assets (other than
intangible assets) including computer software has been provided
according to Straight Line Method on prorata basis at rates specified
in schedule XIV of the Companies Act, 1956.
Intangible assets comprising of product designs, technical know-how
etc. are amortized over a period of ten years, the estimated minimum
useful life of the related products.
Long Term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary.
The closing stock of Raw Materials, Packing Material & Accessories,
Stores & Spares and Work in Process have been valued at cost while the
Finished Goods have been taken at lower of cost or net realisable
value. These goods have been taken as per inventory taken, valued and
certified by the management.
v. Provision for Current and Deferred Tax.
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from timing difference between book and
taxable profit is accounted for using the tax rates and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
vi. Provisions and Contingent Liabilities/Assets
Provision in respect of present obligations arising out of past events
are made in the accounts when reliable estimate can be made of the
amount of the obligations. Contingent Liabilities, if material, are
disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the financial statements.
vii. Employee benefits
Company''s contribution to Government Administered Provident Fund and
Employees'' State Insurance Corporation are charged to Profit & Loss
Defined benefit contributions in respect of gratuity are provided on
the basis of actuarial valuation made at the end of the financial year.
Actuarial gains or loss arising from such valuation are charged to
revenue in the year in which they arise.
viii. Research & Development
Expenditure on research & development which results in creation of
capital assets is treated in the same way as expenditure on fixed
assets. Other research & development expenditure is treated as deferred
revenue expenditure for writing it off over the years when the benefit
would be received.
ix. Revenue Recognition
Sales (net of returns) are recognised at the point of dispatch of goods
to customers and include excise duty but exclude sales taxes.
x. Foreign Currency transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of the transactions. Monetary items (assets and
liabilities) denominated in foreign currency are translated into rupee
at the exchange rates prevailing on the balance sheet date.
The previous year figures have been regrouped / reclassified, wherever
necessary to conform to the current year presentation.