(a) Basis & Method of Accounting
The Company maintains accounts on historical cost convention. The
accrual system of accounting is followed except for Lease Rent,
Gratuity, Bonus & Interest on borrowings from Ranks and FIs and
interest on acceptances.
(b) Fixed Assets and Depreciation
Fixed Assets are stated at the cost of acquisition or construction
inclusive of pre-operative expenditure incurred during the construction
Depreciation is provided under the Written Down Value Method at the
rates specified in the Schedule XIV of the Companies Act, 1956.
Depreciation on additions and capitalisation of assets has been
provided on pro-rata basis from the month of additional and
capitalisation as the case may be.
No amount has been written off in respect of Lease-hold land.
Inventories are valued at cost or net realisable value whichever is
lower. In the case of work in process & finished goods the same is
valued at raw materials and proportionate overhead costs.
(d) Revenue Recognition
Tax exemption and Modvat benefits.
(e) Miscellaneous Expenditure
Miscellaneous expenditure have been written off as 1/10th of every year
in case of Preliminary and Issue Expenses.
(f) Excise Duty
Excise duty on finished goods manufactured is accounted for on
clearance of goods from Factory Premises.
(g) Retirement Benefits
No provision has been made in respect of payment of Gratuity since the
same is accounted on payment basis. Contribution to Provident Fund is
accounted on payment has is.