The financial statements have been prepared on the basis that the
Company is a going concern and in accordance with historical cost
b) FIXED ASSETS AND DEPRECIATION:
i) Fixed Assets are stated at cost less depreciation.
ii) Depreciation is charged on Buildings and Plant and Machinery on
Straight Line method and on other assets on Written down value
method. The rates are as prescribed in Schedule XIV to the Companies
Stock of raw materials, Stores and spares, Work in Process, Finished
goods are valued at lower of cost and net realizable value.
d) FOREIGN CURRENCY TRANSACTIONS:
i) Foreign currency transactions other than for purchase of capital
items remaining unsettled as at the end of the year and not covered by
contracted rates are translated at the rates prevailing at the last day
of the year. The net resultant exchange difference is recognized in the
Profit and Loss Account.
ii) Exchange rate difference arising on Foreign Currency transactions
for purchase of capita! items are adjusted to the cost of Fixed Assets.
e) RETIREMENT BENEFITS:
Liability in respect of Gratuity and Leave encashment are actuarially
ascertained and provided in the books of account. Leave encashment
benefit payable to employees computed as per rules of the company.
Provision for Taxation, the aggregated of Income Tax Liability on the
profit for the year chargeable to tax and Deferred Tax resulting from
timing differences between Book and Tax Profits, if any, is provided in
accordance with the Accounting Standard - 22 (AS22), Accounting of
Taxes on Income, issued by the Institute of Chartered Accountants of