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
of accounting.
 
 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
Sales Tax.
 
 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
use.
 
 H. Investments are stated: At Cost.
 
 I. Claims by/against the Company arising on any account are provided in the account on acceptance/settlement
basis.
 
 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
individual assets.
 
 M. Raw Materials Consumed include cost of Packing, Stores and other
 spares consumed in the process.