| Significant Accounting policies and Notes on Accounts to and forming
part of the Balance Sheet and Profit & loss Account for the year ended
on 31st March 2002:-
1. SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTING
Books of Accounts have been maintained on accrual basis.
ii) INVENTORIES
Inventories are valued at lower of cost and net realisable value. Cost
is determined by using FIFO (First-in, First-out) method and does not
include recoverable taxes and duties incurred.
iii) INVESTMENTS
Current investments are carried at the lower of cost and quoted/fair
value. Long Term Investments are stated at cost. Provision for
diminution in the value of long term investments is made only if, such
a decline is other than temporary in the opinion of the management.
iv) DEPRECIATION
Depreciation on fixed assets is provided on straight line method basis
at the rates prescribed in Schedule XIV of Companies Act, 1956. Hundred
percent depreciation on assets whose cost does not exceed Rs.5000/- is
charged fully in the year of put to use.
v) FOREIGN EXCHANGE TRANSACTIONS
a) Transactions denominated in foreign currencies are normally recorded
at the exchange rate prevailing at the time of the transaction.
b) Monetary items denominated in foreign currencies at the year end and
not covered by foreign exchange contracts are translated at the year
end rates and any income/loss arising on such translation is charged to
Profits & Loss Account.
c) In respect of foreign currency loan,the year end liability is
accounted for at the exchange rates prevailing at the date of Balance
Sheet and difference in rupee liability due to change of exchange rates
at the date of Balance Sheet is adjusted in the cost of concerned fixed
assets.
vi) DEBENTURE ISSUE EXPENSES
Debenture issue expenses are amortised over the term of debentures i.e.
five years
vii) EXCISE DUTY
Excise Duty is accounted for on clearance of goods from the factory and
liability is provided at the end of the year on the finished goods
stock lying in the factory. The sales are inclusive of excise duty.
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