GENERAL
 
 a) Accounting policies not specifically referred to otherwise are in
 consonance with generally accepted accounting principles.
 
 b) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.
 
 c) Interest on National Saving Certificate which is to be accounted for
 on receipt basis.
 
 SALES
 
 Sales exclude Sales Tax but include Excise Duty.
 
 DEPRECIATION
 
 Depreciation on assets is provided on Straight line method at the rates
 and in the manner prescribed in Schedule XIV of the Companies Act, 1956
 except that Leased Assets has been depreciated for the period of Lease
 Agreement.
 
 FIXED ASSETS
 
 Fixed Assets are stated at cost of acquisition inclusive of freight, taxes, erection & installation expenses
and incidental expenses related
 thereto but does not include Excise Duty of which, credit is being
 availed under MODVAT.
 
 INVENTORIES
 
 Raw Materials and Packing Materials are valued at cost plus direct
 expenses. Finished goods and Work in Progress are valued at cost or net
 realisable value whichever is lower.
 
 EXPENDITURE DURING CONSTRUCTION PERIOD
 
 Expenditure incurred in projects during implementation is capitallised
 and apportioned to various assets on commissioning of the Project.