A. Statement of Significant Account Policies :
i) a) Accounts have been prepared on the historical cost except in the
case of assets which have been revalued.
b) Accounting policies are consistent and in accordance with generally
accepted Accounting Principles.
ii) Fixed Asses are stated at cost of acquisition and any subsequent
improvements thereto less depreciation and revalued amount if any. The
cost includes taxes, duties, freight and other incidental expenses
relating to acquisition and installation. Overheads and interest
during construction period on borrowings to finance fixed assets is
capitalised in the ratio of direct cost of assets.
iii) Depreciation is provided as per the rates prescribed in Schedule
XIV to the Companies Act, 1956 on written down value method.
iv) a) Long term Investments are stated at cost.
v) Inventories a) The stock of stores & spares and raw materials are
valued at cost. The cost includes direct procurement cost. b) Stock
of finished goods is valued at lower of cost or market or net
vi) a) Preliminary expenditure are amortised over a period of 10 years
subsequent from the year of its incurrance.
b) Issue expenses are amortised over a period of 10 years from the year
of its incurrance.
c) Deferred Revenue expenditure are amortised over a period of 10 years
from the year of its incurrance.
vii) Income Tax liability is provided on the basis of accounts made for
the financial year under the Income Tax Act, 1961 and on the basis of
Tax Audit Report.
viii) Sales are inclusive of income from services.
ix) Dividend on Investments are accounted on the basis of certainty.
x) Gratuity and earned leave liability is provided on the basis of