| BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared in compliance with all
material aspects of the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India (ICAI) and based on
historical cost convention on accrual basis.
RECOGNITION OF INCOME & EXPENDITURE
Sales are inclusive of excise duty. Material returned / rejected are
accounted in the year of return / rejection. Expenses are accounted on
accrual basis net of service tax, wherever applicable and provision is
made for all known losses and liabilities.
FIXED ASSETS
Fixed Assets are stated at cost of acquisition. Direct costs comprising
of purchase price, import duties, levies and any other directly
attributable costs of bringing the asset to their working condition are
capitalized.
Depreciation is provided on Fixed Assets from the date assets are put
to use, on a straight line method, at rates prescribed under Schedule
XIV of the Companies Act, 1956.
INVENTORIES
Finished goods and raw materials are valued at lower of cost or the net
realizable value inclusive of excise duty as recommended under
Accounting Standard (AS-2). Work-in-progress process and Consumable
stores and spares are valued at cost using the first-in first out
method.
A periodic review is made of slow moving stock and appropriate
provisions are made for anticipated losses, if any.
INCOME TAX
Current Income-tax is determined in accordance with the provisions of
the Income-tax Act, 1961.
Deferred tax asset is recognised, subject to consideration of prudence,
on timing differences, representing the differences between the taxable
income and accounting income that originated in one period and capable
of reversing in one or more subsequent periods. Deferred tax assets and
liabilities are measured using current tax rates.
In the absence of virtual certainity about the availability of future
taxable income Deferred Tax Asset has not been recognised as on 31st
March, 2014 in terms of Accounting Standard 22.
INVESTMENTS
Investments are classified into current and long term investments and
stated at cost. Provision for diminution, if any, in the value of
long-term investments is made to recognise a decline, other than
temporary, in the value of long term investments.
RETIREMENT BENEFITS
Retirement benefits in the form of provident fund, gratuity and leave
encashment is accounted on actuarial basis and charged to profit and
loss account.
FOREIGN CURRENCY TRANSACTIONS
Export sales and import purchases are accounted at the rates prevailing
at the date of transaction. Gain and losses on settlement of such
transactions and from translation of monetary assets and liabilities
are accounted in the profit and loss account.
IMPAIRMENT
Impairment of Assets are assessed at each balance sheet date and loss
is recognized whenever the recoverable amount of an asset is less than
its carrying amount.
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