A. The accounts of the Company have been prepared on Historical Cost
convention and are in accordance with the applicable Accounting Standards and generally accepted principles
B. Except as otherwise stated all items of revenue income and expenses are accounted for under the natural
heads of accounts. These are accounted for on accrual basis except in the case of:
i. Excise Duty on Finished Goods lying in factory, which is accounted
for on removal of finished goods.
ii. Insurance claims, which are recognised only when the claim amount is actually received.
iii. Interest on Allotment Money, Calls in Arrear and Book Debts, which is accounted for on actual receipt.
C. Sales means Sale Price including Excise Duty and Export Incentives, applicable, but does not include
D. Gratuity and Bonus liability to staff to be accounted for on payment basis.
E. Depreciation on Fixed Assets is provided on Straight Line Method at the applicable rates provided in
Schedule XIV to the Companies Act 1956, on prorata basis.
F Inventories are valued asunder:
i. Raw Materials At Cost
ii. Finished Goods At Market Price
iii.Stores Spares and Packing Materials At Cost
G. Fixed Assets are stated at Cost. The cost of an Asset means and
includes the Purchase pre and directly attributable expenses incurred
for bringing the asset to working condition and also includes appropriate portion of incidental expenses and
financing costs relating to borrowed funds attributable to the fixed assets upto the date the asset is put in
H. Investments are stated: At Cost.
I. Claims by/against the Company arising on any account are provided in the account on acceptance/settlement
J. Preliminary Expenses and Share Issue Expenses are amortised over a period of 10 years.
K. Deferred Revenue Expenditure is written off over a period of 10 years.
L. Project related Pre-operative expenses are capitalized as Preoperative expenses pending allocation to
M. Raw Materials Consumed include cost of Packing, Stores and other
spares consumed in the process.