a) Method of preparation of Accounts :
Accounts have been prepared on historical cost convention and in
accordance with the normally accepted accounting principles.
b) Fixed Assets :
i) Land, Building and Plant & Machinery as on 31/3/1994 have been
revalued and stated at the value as determined by the approved valuer.
ii) Other fixed assets are stated at the original value including
taxes, freight and other incidental expenses related to
c) Inventories :
Inventories are valued at average cot or realisable value, whichever is
d) Revenue Recognition :
Revenue is recognised where the goods have left the factory premises
in respect of the invoices raised by the company or its branch offices
directly, and in respect of consignment sales on the physical
despatch of goods to the customers by the consignment agents.
e) Depreciation :
Depreciation is computed on straight line basis, in accordance with the
provisions of Schedule XIV to the Companies Act, 1956. The difference
in depreciation charge arising out of revaluation of fixed assets as on
31st March 1994 is transferred from revaluation reserve account to
profit and loss account.
f) Leases :
Lease rental are expenses with reference to lease terms and other
g) Gratuity :
The Company has opted for the Group Gratuity Assurance Scheme of LIC of
India and provision has been retained in the accounts for the past
liability as per assessment of the LIC which is being adjusted out of
the enhanced premium payable.
h) Claims :
Claims against the Company including the liquidated damages are
recognised only on acceptance basis.
i) Miscellaneous Expenditure :
Preliminary expenses / Share Issue expenses are amortised over a period
of ten years.