| A. Method of accounting
The accounts are prepared on the historical cost basis adjusted by
revaluation of fixed assets.
B. Fixed assets and Depreciation
The value of goodwill is shown at cost price. No depreciation is
provided on the leasehold hand.
C. Inventory Valuation
a) Finished stock and work-in-process is valued at cost or estimated
value whichever is less.
b) Raw materials, Stores and Loose tools are valued at cost.
c) Plant and machinery scrap is valued at estimated cost.
D. Income recognition and expenditure:
Sales are shown after providing for adjustment of trade discount and
goods return. Income and expense are recognized on accrual basis.
E. Foreign currency transactions
All foreign currency transactions have been accounted at the rate
prevailing on the date of the transaction. As per AS 11, all
outstanding foreign currency transactions are valued at appropriate
exchange rate prevalent on the close of financial year and any
fluctuations are provided for in the Profit and Loss Account.
F. Taxes on income
Current tax is determined on the basis of the amount of tax payable on
the taxable income for the year. Deferred tax is recognized, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods.
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