1. GENERAL :
(a) The Accounts are prepared under the historical cost convention, in
accordance with the generally accepted accounting principles and the
provision of the Companies Act, 1956 as adopted consistently by the
(b) Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
2. FIXED ASSETS :
Fixed Assets are shown at Original cost of acquisition less accumulated
Fixed Assets are revalued as on 31.03.2012. The surplus arising from
the revaluation has been transferred to Revaluation Reserve and
shown under the head Reserves & Surplus. As the Fixed Assets were
revalued on the last day of the Balance sheet, no depreciation has been
provided on Revalued Figures.
3. DEPRECIATION :
Depreciation is provided on straight line basis applying the rates
specified in Schedule XIV of the Companies Act 1956 under straight line
(i) In respect of assets acquired on 01.01.1994 and thereafter at
revised rates specified in the said Schedule vide Notification No 756 E
dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993
issued by the Department of the Company Affairs.
(ii) In respect of assets on hand as on 31.12.93 at the rates in force
prior to the abovementioned notification.
4. INVENTORIES :
Raw materials and consumable Stores are valued at cost. Finished and
Semi Finished goods are valued at lower of cost or market value.
5. REVENUE RECOGNITION :
In case of Sales of Goods - When the property and all significant risk
and rewards of ownership are transferred to the buyer or no significant
uncertainty exists regarding the amount of consideration that is
derived from the sale of goods. It excludes amounts recovered towards
Sales Tax and includes amount received towards process- ing activities
done for other, if any.
6. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD:
All normal pre-production revenue expenditure including interest on
borrowed funds till the commencement of commercial production are
7. TREATMENT OF EMPLOYEES BENEFITS :
Benefits payable to employees during their tenure of employment viz.
Bonus, Leave Encashment etc are ac- counted on cash basis. Retirement
benefits are accounted as and when the same become due for payment.
8. CURRENCY TRANSACTION :
(i) Import and Export of goods in foreign currency are accounted at
exchange rates prevailing on the date of payment, whenever made.
(ii) Term loans in foreign currency for financing capital expenditure
were accounted at rupee equivalent values on the date of loans
disbursement. Till 31.12.2001 year-end outstanding loans were
reconverted at the rate prevailing on Balance Sheet Date.
9. MISCELLANEOUS EXPENDITURE:
The balance amount of Expenses on Exhibition Index-II would have been
amortised in the two financial years
10. TREATMENT OF CONTINGENT LIABILITIES/GAINS
The amount of contingent losses are charged to the Profit & Loss
Account on a reasonable estimated basis that probable future event
confirm that an asset has been impaired or a liability has been
incurred as at the Balance Sheet Date and contingent gains are not
recognized in the accounts.