1. Basis of Accounting: -
(a) The accounts are prepared under the historical cost concept. All
expenses and incomes to the extent ascertained as payable and
receivable respectively are accounted for on mercantile basis unless
(b) Sales are recognised in passing of property in goods as per terms
2. Fixed Assets: -
Fixed assets are carried at cost of acquisition or construction less
3. Depreciation: -
Depreciation on assets is provided in the accounts at the straight-line
value method. Depreciation on additions have been provided on prorata
basis (monthly rests) as prescribed under the Schedule XIV of the
Companies Act, 1956
4. Inventories are valued as under: -
(a) Raw Material, Stores, Spares and Consumable At cost
(b) Finished Goods Lower of cost or Market Price
(c) Goods in Process At Estimated Cost Cost includes an appropriate
proportion of expenses.
5. Contingent Liabilities: -
Contingent Liabilities not provided for are disclosed by way of notes.
6. Sales: -
Sales are net of Excise duty.
7. Excise Duty: -
Excise duty on finished goods is accounted for as and when the material
8. Retirement Benefits: -
(a) Contribution to Provident Fund and other recognized Funds are
charged to Profit & loss Account
(b) Leave encashment is provided in terms of contractual obligations as
per companys Rules
(c) Gratuity liability is provided on the basis of actuarial valuation.
9. Contingent Liabilities: -
Contingent Liabilities are not provided and disclosed by way of notes
10. Accounting Policies: -
Accounting policies not specifically referred to here in above is in
consistent with generally accepted accounting practices.