1. The accounts have been prepared on historical cost convention and on
going concern basis and based on the provisions of Companies Act, 1956.
2. FIXED ASSETS
Fixed assets have been stated at cost of Construction/acquisition/ fabrication. In respect of projects
involving construction related pre-operational expenses including interest, form part of the value of assets
capitalised. Dies for Locks and Latches are capitalised in the year of approval in which sample of
Locks/Latches produced from the said dies are received from customers.
Investments held on permanent basis are stated at cost of acquisition.
a. Finished goods are valued at lower of cost or market value.
b. Semi finished goods are valued at cost of finished goods less 10%
being estimated expenditure to be incurred to make these as finished
c. Raw Materials, Components, Stores & Spares are valued at cost.
d. Loose Tools are valued at depreciated cost.
e. Saleable scrap is valued at estimated realisable value.
5. REVENUE RECOGNITION
i. Revenue is recognised in case of product sales at the time of despatch of goods from factory/depots.
ii. Sales are net of Inter Unit/Depot transfers but inclusive of material produced and consumed/capitalised
by other Divisions/units.
6. EMPLOYEE BENEFITS
i. Provident Fund
The Company operates a provident fund trust for its officers excepting
in the case of its employees where the provident fund contributions are
deposited with the appropriate authorities.
The Company operates a Superannuation fund/Gratuity fund Trust which in
turn have taken policies with the Life Insurance Corporation of India
for all eligible employees.
iii. Leave Encashment
Leave Encashment is accounted for on cash basis following past practice.
7. FOREIGN EXCHANGE TRANSACTION :
Foreign Currency transactions outstanding at year end are restated at
rate of exchange prevailing at the close of the year. The resultant
exchange gains and/or losses are recognised in the profit & loss
8. DEPRECIATION :
i. Depreciation on fixed assets, other than lease hold land, is charged on straight line method at rates
derived from the rates provided for corresponding assets under the Income Tax Act. The rates followed are :
Plant & Machinery 8.70% 111.88% 111.31%
Dies & Jigs 11.31%
Furniture & Fixtures 3.34%
Electric Installation 11.88%/11.31%
Represents rates adopted for vehicles acquired on and after 1.4.1990.
** Schedule XIV rates adopted for additions made after 1.4.91 where
Income Tax Rates were lower.
ii.a. For assets acquired prior to 2.4.1987 depreciation is provided at rates applicable at the time of
b. Computers, Dies and Jigs are depreciated prorata at rates prescribed in Schedule XIV to the companies
c. Premiums paid for lease hold land are amortised over the period of