1. Basis of Accounting :
The accounts are prepared under the historical cost convention on
2. Valuation of Inventories
Raw Materials, Stores & Spares and Packing materials are valued at
Semi finished & finished goods are valued at lower of cost or estimated
Cost includes estimated apportioned overheads.
Inventory of Raw Materials includes Material in Transit.
3. Excise Duty
Sales are inclusive of excise duty and net of discount.
- Credit of CENVAT availed is adjusted towards cost of materials.
4. Fixed Assets
Fixed Assets have been stated at cost inclusive of expenses incurred
for acquiring, erecting and commissioning, incidental and development
expenditure incurred on projects.
Provided on Straight Line Method at the rates and in the manner
prescribed in schedule XIV of the Companies Act, 1956.
- (I) Quoted
Long Term Investment are stated at cost less diminution in value.
- (II) Unquoted
Long Term Investment are stated at cost less diminution in book value.
7. Insurance Claims
Accounted for on accrual basis.
8. Research & Development
Revenue Expenditure on research & development is charged to the profit
and loss account in the year it is incurred. Capital expenditure on
research and development is treated as addition to fixed assets.
9. Material In Transit
Custom duty and other incidental expenses on imports are accounted for
on accrual basis.
10. Taxes on Income
Deferred tax is recognized subject to the consideration of prudence, on
timing difference, being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent periods.
11. Retirement Benefits
(I) Gratuity is provided for on actuarial valuation basis.
(II) Leave Encashment is provided for on accrual basis.
12. Translation of Foreign Currency Loans
Are realigned at the year end rate and the difference arising if any,
is booked to revenue.