1. ACCOUNTING CONVENTION
The Company follows the mercantile systems of accounting i.e. all
income and expenses are accounted for on accrual basis.
2. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost is
inclusive of freight, duties, levies and any directly attributable cost
of bringing the assets to their working condition for intended use.
Depreciation is provided as per the W.D.V. method at rates (single
shift basis) provided under Schedule XIV to the Companies Act, 1956.
Manufacturing activities at Bhiwadi, Sikandrabad and NEP2 Unit were
stopped w.e.f. February. 1998. December 1998 and July 1999
respectively. However depreciation has been provided upto March, 2002.
Investments are stated at cost.
Stock in trade is valued at cost or net realisable value, whichever is
lower. The basis of determining cost of inventories are as follows:
Finished Goods Material Cost Plus Direct Expenses.
6. FOREIGN EXCHANGE TRANSACTIONS
There is no foreign exchange transaction as such.
Sale of goods is recognised at the point of despatch to the customer.
Sales excludes the sales tax amount.
No provision is made in the financial statements for dividend as
Directors have not recommended any dividend due to loses in the
company, even on preference shares.
The provision of gratuity is on accrual basis.