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 exclude Sales Tax but include Excise Duty.
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
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.
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.