i. The Accounts are prepared on the historical cost basis and on the
accounting principles of going concern.
ii. Accounting policies not specifically referred to otherwise are
consistent, and are in accordance with generally accepted accounting
2. FIXED ASSETS & DEPRECIATION
i. Fixed Assets are stated at cost including taxes, duties, freight,
other incidental expenses incurred in relation to acquisition and
installation of the same, but after taking credit for excise Modvat on
capital goods and Prorata allocated Incidental Expenditure during the
ii. Depreciation is provided on Straight Line Method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
iii. Advances given for capital expenditure are included in and shown
under the head (Fixed Assets) Capital Work in Progress.
3. INCIDENTAL EXPENDITURE PENDING ALLOCATION
Preliminary and Pre Operative Expenditure net of income earned is
capitalised and added prorata to the cost of fixed assets.
4. MISCELLANEOUS EXPENDITURE
Preliminary and Share issue Expenditure (Net of Interest/Income earned), shall be written off over a period
of 10 years from the date/year of production.
Sales is shown including Excise Duty.
Liability for excise duty on finished goods is accounted as and when
they are cleared from the factory premises. No provision is made in
the accounts of excise duty for the goods manufactured and lying in the
Raw materials Purchases and raw material consumption are shown at cost
including Modvat credit.
Raw materials, packing materials stores and consumables have been
valued at cost.
Stock of Work in Process have been valued at cost.
Stock of Finished goods and materials in process have been valued at
cost or net realisable value whichever is lower.