- The Financial Accounts are prepared under the historical cost
convention on accrual basis on going concern basis of accounting and
comply with the mandatory accounting standards issued by ICAI.
- Fixed Assets are stated at cost and depreciation is provided on
straight line method at the rate specified in Schedule XIV of Companies
- Inventories are valued as under :
(a) Raw Material, Stores & Packing Items At Cost
(b) Stock in Process At Estimated Cost
(c) Finished Goods At Ex-Factory price
excluding ED & ST
(d) Dead Stock At Estimated Cost
- The Technical know-how fees are treated as deferred revenue
expenditure and the said amount is written off over a period of six
- Sales are excluding Excise Duty & Sales Tax.
- Income/Expenditure are generally accounted on accrual basis except
Excise Duty on account of Goods Manufactured is accounted at the time
of removal of Goods from place of manufacture.
- Foreign Currency transactions are recorded at the Exchange rate
prevailing at the time of purchase and any fluctuation thereon is
accounted at the time of actual payments.
- Leave Encashment is paid every year and charged to P&L Account. For
Gratuity Company is contributing to Gratuity Trust Fund to LIC and any
difference on actual payment is accounted at the time of payment.