i) The Company has been consistently following accrual method in
account- ing its income and expenditure. The accounting is on the basis
of going concern concept.
ii) The values of fixed assets have been arrived at on historical cost
including sales tax and other expenses incurred and as reduced by
iii)Depreciation has been charged in the accounts as per schedule XIV
of Companies Act, 1956. From the year 1990-91 and onwards, depreciation
has been calculated on Straight Line Method on additions made to the
fixed assets and on Written Down Value Method for assets put into use
prior to that date.
iv) Investments are valued at cost
v) Stock of raw materials, stores and spares, finished goods and stock
in trade are valued at cost or net realisable value whichever is
lower.Cost as- signed for valuation of stores and spares is on weighted
average basis and of raw materials,finished goodsand stock in trade on
first in first out basis, after providing for diminution in value of
obsolete/damaged and slow moving items.
vi)Revenue from sales transactions is recognised as and when the
property in the goods is transferred to the buyer for a definite
consideration. Export incentives are recognised on accrual basis.
vii)Contingent liabilities are generally not provided in the accounts
and are shown in item No.25 of notes attached to and forming part of
viii)Deferred tax is recognised on the timing differences between the
ac- counting income and taxable income for the year and quantified on
the basis of tax rates enacted as on the date of Balance Sheet.