1. SYSTEM OF ACCOUNTING
The Company adopts the accrual concept in the preparation of accounts.
2. METHOD OF ACCOUNTING
Assets and Liabilities are recorded at historical cost. These costs are
not adjusted to reflect the changing value in the purchasing power of
3. FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on straigtline
method as specified in Schedule
XIV of the Companies Act, 1956. Leasehold land not amortized.
The inventories are valued at cost, except the finished goods which are
valued at cost or net realisable value whichever is lower.
5. FOREIGN CURRENCY TRANSACTION
Foreign currency transactions are accounted at exchange rates prevailing on the date the transaction takes
place, All exchange differences arising in respect of foreign currency transactions are deal with in the
Profit and Loss Account.
6. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged to the Profit and Loss Account of the period in
which it is incurred. Capital expenditure on Research and Development is shown as additions to Fixed
7. MISCELLANEOUS EXPENDITURE
Preliminary and share / debenture issue expenses have been amortised
over a period of ten years. Deferred revenue expenditure including
those on test marketing has been amortised over a period of five years.
8. RETIREMENT BENEFITS
Contribution to the Provident Fund is made monthly at the statutory rate in force to the appropriate
authority and debited to the Profit and Loss Account on accrual basis.