a. Sales as reported in inclusive of Excise Duty.
b. Income and Expenditure are accounted on accrual basis.
Modvat credit is accounted for by reducing the purchase cost of related
3. FIXED ASSETS
Fixed assets include all expenditure of capital nature and are stated
at cost of acquisition, installation and commissioning, less
depreciation. Fixed Assets values are stated at historical cost.
4. DEPRECIATION ON FIXED ASSETS
Depreciation is provided on the straightline method corresponding to
the rates specified under Schedule XIV of the Companies Act, 1956 as
amended upto date. Depreciation for additions has been provided for
the full year. No Depreciation is provided on Assets in the year of
Depreciation on Machinery and Equipment costing upto Rs. 5,000.00 each
is provided at 100%.
5. FOREIGN CURRENCY TRANSACTION
Import of Goods in Foreign Currency are stated at the Exchange Rate
prevailing on the date of purchase where such purchases are not covered
by forward contracts. Gain/Loss arising out of fluctuations in the
exchange rate are accounted for on realisation. As regards exports,
the company gets Post Shipment credit in Indian Rupees by way of
negotiation/discount of export bills. The Foreign Exchange,
fluctuation on export sales is added to export sales in the year of
(a) Raw materials/Packing materials are valued at cost.
(b) Stock-in-process is valued at cost.
(c) Finished goods are valued at lower of cost or Market Price.
7. CONTINGENT LIABILITIES
Contingent liabilities are not provided for and are disclosed by way of
notes to accounts.
8. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD
Expenditure during construction period are included under Capital Work
in Progress and the same is allocated to the respective fixed assets on
the completion of construction.
9. RETIREMENT BENEFITS
Gratuity contribution is charged to revenue on the basis of payment
made to Gratuity Trust in accordance with scheme framed by the Life
Insurance Corporation of India.