1. Statement of significant accounting policies A. Basis of preparation
of the financial statements
a. The financial statements have been prepared under the historical
cost convention, on accrual basis, as a going concern, in accordance
with the generally accepted accounting principles, mandatory accounting
standards issued by the ICAI and the provisions of the Companies Act,
b. Accounting policies not specifically referred to otherwise are in
consonance with the generally accepted accounting principles.
B. Fixed Assets and Depreciation
a. Fixed assets are stated at cost less accumulated depreciation,
subject to adjustment of exchange fluctuation where applicable.
b. Depredation has been provided on the straight line method as per the
rates and regulations prescribed under schedule XIV of the Companies
C. Valuation of inventory
Raw materials (imported) - at landed cost
Raw materials (indigenous) - at cost
Work-in-Progress - at cost
Finished goods - at lower of cost or market value
Stores and Spares - at cost
D. Foreign currency transactions
a. Export sales bills negotiated with bank are recorded at the exchange
rates prevailing on the dates of negotiation and those sent for
collection at exchange rate on the reporting date. Correspondingly the
sundry debtors are at the aforesaid exchange rate.
b. Sundry creditors for imports are stated at the exchange rate
prevailing on the reporting date and exchange fluctuations arising
thereof has been recognised as revenue.
E Revenue recognition
All income and expenditure items having material bearing on the
financial statements on accrual basis.
F. Employees retirement benefits
Company's contributions to Provident Fund are charged to revenue.
G. Miscellaneous Expenditure
Preliminary expenses have been amortized over a period often years.