1. Basis of Accounting: The accounts have been prepared in conformity with the generally accepted
accounting principles as enunciated by the relevant authorities and are based on the accrual basis of
(i) Leasehold land is not depreciated.
(ii) Other Fixed Assets are depreciated on the straight line method at
the rates prescribed in Schedule XIV to the Companies Act, 1956.
3. Amortisation: The Preliminary and Public issue expenses are amortised over a period of ten years in
4. Inventories: Inventories are valued at lower of cost or net realisable value.
5. Retirement Benefits: Contribution to Provident Fund and Employees State Insurance Fund are made monthly
as per rules applicable and ebited to Profit & Loss Account on accrual basis. No provision for liability
under the Payment of Gratuity Act is necessary since the payment of Gratuity Act is not applicable.