A) Accounting Assumptions
Accounts have been prepared under the historic cost convention on the
basis of a going concern in accordance with the disclosure
requirements of the Companies Act, 1956.
B) Revenue Recognition
i) Income & Expenditure are accounted for on accrual basis.
ii) Sales are inclusive of excise duty but net of returns, rebate and
sales tax. Sale of scrap/waste has been accounted for on cash basis.
iii) Insurance Claims have been accounted for on the basis of best
estimate/actual loss surveyed/assessed
C) Fixed Assets
Fixed Assets are accounted at cost of acquisition, including inward
freight, non-refundable duties or taxes and any directly attributable
cost of bringing the asset to its working condition for its intended
i) Depreciation has been provided as per Straight Line Method at the
rates prescribed in Schedule XIV of Companies Act, 1956. as amended by
Notification No. GSR 756(E) dated 16th December, 1993.
ii) Premium on lease hold land is amortized over the period of lease.
iii) The Company has been technically advised that it can be
categorised as continuous process plant within the meaning of footnote
No. 7 to Schedule XIV and has accordingly provided depreciation on
Plant & Machinery.
Long Term investments are stated at cost.
in) Inventories of Finished Goods, Goods in Process. Raw Material,
Packing Material and Stores & Spares are valued at lower of cost or net
ii) Valuation of finished goods lying in Excise Godown is valued at the
rates including Excise Duty.
Lease rentals, as per respective operating lease agreement, are charged
to Profit & Loss Account
H) Government Grants
Capital Investment Subsidy received by the Company is treated as
I) Employees Retirement Benefits
Companys contribution to Provident Fund are charged to Profit and Loss
Account. Gratuity liability to employee is covered under the Group
Gratuity Policy taken from Life Insurance Corporation of India, the
annual premium is charged to Profit & Loss Account. Provision is being
made tor leave encashment based on actual liability of the year end.