NOTES TO FINANCIAL STATEMENTS 1 ACCOUNTING POLICIES: (I) BASIS OF ACCOUNTING : The accounts are brpared in accordance with applicable mandatory accounting standards under the historical cost convention and mercantile system of accounting is followed for recognition of Income and Expenses . (II) INVESTMENT : Current investments are valued at lower of cost and fair market value. Long term investments are stated at cost after deducting provisions made for other than temporary diminution in the value , if any. (III) FIXED ASSETS : Fixed assets are stated at cost. Cost comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the assets to its working condition for its intended use. (IV) INVENTORIES : Inventories are valued at the lower of cost and net realizable value . Cost comprises of all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. Cost of Raw Material is determined on seasonal weighted average cost. Cost of stores and spares and finished goods are determined on weighted average cost. (V) BORROWING COST : Borrowing Cost that are directly attributable to the acquisition ,construction or production of a qualifying asset are capitalized and other borrowing cost are charged to Profit & Loss Account. (VI) DEbrCIATION : Debrciation on the Fixed Assets has been provided in the books on straight liner method over the useful life of the assets in the manner brscribed in schedule II of the Companies Act, 2013. (VII) SALES: Sales includes freight and handling outwards but is net of goods returned, rebates and discounts. (VIII) EMPLOYEE BENEFITS : (i) Salaries, wages,and house rent allowances are accounted for on accrual basis. (ii) Liability for employees' gratuity is accounted for on the basis of contribution determined by L.I.C. under their Group Gratuity Cash Accumulation Scheme. (IX) Prepaid expenses are proportionately accounted for on time basis in respect of insurance brmium. (X) Insurance claims are accounted for on the basis of claims filed with the Insurance Company and adjustments arising due to short/excess received in such claims are made in the year the claim is finally settled. 2 Balances of Sundry Debtors , Advances and Creditors, are subject to confirmation. 3 Directors have paid on maturity date dividend of Rs. 32380/- (including Dividend Tax ) on 10% 5000 Cumulative Redeemable Preference shares of Rs. 100/- each out of accumulated past profits. 4 Figures of brvious year have been regrouped and recast to conform to the layout of the accounts for the current year. |