I. Fixed Assets
Fixed assets are stated at their original cost including Freight,
Duties, Taxes and other incidental cost related to acquisition and
installation. Also refer to Note 3 below.
Depreciation on Fixed Assets other than Plant and Machinery has been
provided on written down value method and on Plant and Machinery on
straight line method in accordance with the rates and manner specified
in Schedule XIV to the Companies Act, 1956 (as amended). Leasehold land
is amortized over the life of the lease.
Inventories are valued as follows:
Raw materials and Packing materials Stores and spare parts - At Cost
Finished Goods - At lower of cost or net realisable value
Investments are valued at cost. Earnings from investments are accounted
for on accrual basis
Revenue from sale of goods is recognised on dispatch of goods from the
factory/depots or consignee agents. Insurance claims are accounted for
on admittance of the claim by the relevant authorities.
In keeping with practice generally followed by in the Company,
Provision for gratuity is made in respect of employees who have
completed five years of service with the Company on the basis of last
salary drawn for half month''s salary for every completed year of