| The following are the significant accounting policies adopted by the
Company in the preparation and presentation of financial statements:
i) Financial statements are based on historical cost.
ii) Special Incentive received is treated as Capital Reserve.
iii) Fixed Assets are stated at cost net of depreciation provided for
and MODVAT credit availed.
iv) Leasehold land is amortized over the period of lease. Immovable
assets on the lease hold lands are amortized in accordance with
Schedule -XIV to the Companies Act, 1956 where the estimated life of
the assets is less than the lease periods.
Where the estimated life of the immovable assets on lease hold lands is
more than the lease periods, they are amortised over the lease periods.
Depreciation on the assets of the Company, other than those mentioned
above, is provided on straight line basis / written down value method
in accordance with schedule XIV to the Companies Act 1956.
v) Stores and Packing materials, work-in-progress and stock in trade
are valued at lower of the cost or realisable value.
vi) Sales are exclusive of taxes and duties collected.
vii) Provident Fund is administrated and remittances are made to
Provident Fund Commissioner.
viii) Liabilities towards gratuity and leave encashment are provided
for in accordance with the provisions of Payment of Gratuity Act 1972,
Factories Act, 1948 and Shops and Establishment Act, 1988 respectively.
x) Contingent liabilities are indicated by way of a note and will be
provided/ paid on crystallisation.
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