Under statement of Accounting Policies
1. The company has been consistently following the accrual method in
accounting its income and expenses. The same procedure is followed
this year also. The accounting is on the basis of a going concern
2. There is no Research and Development activity by the company and the
allocation of amounts of the cost specifically attributable to research
and development does not arise.
3. Revenue from sale transactions is recognised as and when the
property in the goods sold is transferred to the buyer for a definite
consideration. Revenue from service transactions and other sources is
recognised on the completion of the contract and there is no
uncertainity regarding the amount of consideration of collectibility.
4. a) Sales as reported is exclusive of Excise Duty, Sales tax,
Insurance and Transport charges.
b) Export Sales are accounted for at the rate prevailing on the date on
which transaction takes place. Gain or Loss arising out of exchange
rate fluctuation is recognised and accounted for on the date of
5. Depreciation on revalued assets has been deducted from the
6. The cost of fixed assets is shown at historical cost except land and
building which are shown at the revaluation amount.
7. a) Depreciation has been calculated at the rare specified in
Schedule XIV of the said act as amended by the Circular No. 14 Dt.
16.12.1993 by the Department of Company Affairs as follows:
Written Down Value Method upto 30.06.1964 and 01.04.1966 to 31.03.1970
for Machinery and Electric Machinery. Straight Line Method from
01.04.1964 to 31.03.1966 and 01.04.1970 onwards. All other assets
other than machinery and electric machinery Written Value Method.
For Machinery and Electrical machinery at the rate applicable for
continuous process plant from 01.04.1993.
b) In respect of all assets purchased or sold during the year
depreciation has been provided at the above rates on prorata basis from
the date of purchase including all assets even if the cost is below
Rs.5,000/- or till the date of sale as the case may be
8. Inventories :
Stock of stores of weighted average cost, FIFO Raw materials, Mixing
and process and Finished Goods at Cost or Net Realisable Value which
ever is lower and waste at Residual Price.
9. The value of modvat benefit eligible has been reduced from the value
of materials and the consumption of materials has been arrived
accordingly and the value of modvat benefit eligible in respect of
capital item is being reduced from the value of capital goods.
10. Investments are shown at cost less any permanent diminution in
value interest received on investments and dividend will be accounted
in receipt basis.
11. It is the policy of the company to amortise expenditure incurred on
Sales promotion, voluntary retirement compensation, Advertisement,
public, Preference Shares expenses for the period of over 10 years.
12. Drafting Materials have been capitalised and depreciation have been
written-off the capitalised value materials considered for
capitalisation have a enduring benefit for a period of more than five