SIGNIFICANT ACCOUNTING POLICIES:
i) These accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
ii) Accounting Policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
Sales are inclusive of Excise Duty.
c) Valuation of Inventories
Raw Materials, Stores, Spare parts and Packing materials are valued at
cost or market price whichever is lower, scrap stock is valued at
Goods in process are valued at cost, and finished goods are valued at
lower of cost or net realisable value. Cost for this purpose is
computed on the basis of cost of material, labour and other related
Depreciation on fixed assets has been provided on straight line method
at rates provided by Schedule XIV of the Companies Act, 1956. Freehold
land is not depreciated.
e) No provision for gratuity and provident fund has been made as the
Company was incorporated in January, 1992 so no employee has been put
in the qualifying period of service.