1. The Company follows accrual system of accounting for recognition of
income and expenses. The accounts have been prepared primarily on the
historical cost convention.
2. FIXED ASSETS
Fixed Assets are stated at historical costs. They are not adjusted to
reflect inflation. The assets are capitalised at cost including
transportation, installation and other related expenses.
Depreciation is calculated on Straight Line Method in the manner
prescribed and at the rates specified in Schedules XIV to the Companies
Inventories of Raw Materials, Stores and Spares and Packing Material
are valued at cost. Work in Process is valued at an estimated cost.
Finished goods are valued at lower of cost or net realisable value.
4. FOREIGN CURRENCY TRANSACTIONS
Transactions in Foreign Currency are recorded at the exchange rate
prevailing on the due dates. Assets and Liabilities remaining unsettled
are converted at the exchange rates prevailing as at the end of the
Realised gains and losses on Foreign Exchange transactions other than
those related to Fixed Assets are recognised in Profit and Loss
5. RETIREMENT BENEFITS.
Gratuity : The Company has an arrangement with Life Insurance
Corporation of India to administer the gratuity scheme. The premium
paid/payable is debited to the Profit & Loss Account on accrual basis.
Leave Salary : Leave Salary is accounted on accrual basis.
6. Preliminary and share issue expenses are written off over a period
of ten years.
7. Sales include excise duty and sales tax.