The Financial Statements are prepared under the historical cost
convention in accordance with aplicable account- ing standards and
relevant presentation requirements of the Companies Act, 1956
1. FIXED ASSETS AND DEPRECIATION
a. Tangible assets are stated at the cost minus the accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses and in the case of plant and
machinery, interest on loans taken for the acquisition of assets upto
the date of commissioning of the assets. In case of foreign exchange
transaction relating to fixed assets, the cost has been taken on the
basis of payment made at exchange rate, prevailing on the date of
b. Depreciation is charged on a pro-rata basis under the Straight line
method rates prescribed in Schedule XIV to the Companies Act, 1956
except for plant and machinery costing less than Rs. 5,000/- each in
value, which is depreciated at the rate of 100%.
Investments are stated at cost.
Basis of Valuation
Stores and Spare Parts : At Cost
Raw Materials : At Cost anA Market Value
Work-in-process : At Material Cost
Finished Goods : At Realisable Value
4. RETIREMENT BENEFITS
a) Gratuity Payment have been accounted for on Payment Basis.
b) The Company has taken LIC Group Insurance Scheme in Jieu of
Employees Deposit Linked Insurance Scheme to provide life assurance
benefits to the employees.
5. FOREIGN EXCHANGE TRANSACTION
Foreign Currency Liabilities are transacted at exchange rate prevailing
on the date of clearance of goods from custom authorities. The loss or
gain arising out of said transaction if any, on account of exchange
rate variation are adjusted under the respective head if paid during
the same year. Otherwise the same are adjusted to Profit and Loss
Account of year in which it is paid.
Sales includes excise duty and sales tax collected.