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Accounting Policies of National Plastic Technologies Ltd. Company

Mar 31, 2015

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except where overstated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Based on Internal Technical Evaluation, the Company has re-assessed the remaining useful life of fixed assets w.e.f 1st April 2014 in accordance with Part A of Schedule II to the Companies Act, 2013. As a result of the above, depreciation is higher by Rs. 15.94 lacs for the yearended31.03.2015.

However, based on the engineer''s certification, the useful life of Plant & Machinery and Electrical fittings of Irungattukottai and Guindy Plants have been enhanced as follows:

(i) Plants Machinery- from 15 years to 25 years

(ii) Electrical fittings - from 10 years to 15 years

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company''s factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value whichever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for; except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company''s contributions under Provident Fund Act and Employees State Insurance

Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2014

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXEDASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company''s factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India. The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company''s contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2013

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company''s factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of Production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As

per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS.

(i) Company''s contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2012

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company's factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s115JBof the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2011

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent

with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION :

Depreciation is provided from the date the as s ets h ave be en acq u i r ed / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company's factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material c o s t inclusive of CE NVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material c o s t inclusive of CENVAT, Manufacturing and administrative overhead.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

9. TAXATION:

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company's contributions under

Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2010

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION :

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act, 1956.

5. REVENUE RECOGNITION :

Sale of goods is recognized at the point of dispatch of goods to the customers from the Companys plants.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of raw material cost inclusive of Cenvat, manufacturing and administrative overheads or net realisable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of raw material cost inclusive of Cenvat, manufacturing and administrative overheads.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provisions are made for same and contingent assets are neither recognised nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognised subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognised on the basis of Return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognised as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to Profit and Loss Account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS.

(i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognised on payment basis. This is inconsistent with Accounting Standard 15

Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognise a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion, there is no impairment loss to the fixed assets during the year.

Mar 31, 2009

(i) Accounting policies are consistent with generally accepted Accounting Principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed arid Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus,. Rates & Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure which are of Capital nature are capitalized at cost which directly incurred in acquiring assets.

3. CAPITALWORKIN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Companys factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period tor using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

10. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India. .

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2008

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting Principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently.

2. FIXED ASSETS:

Expenditure which are of Capital nature are capitalized at cost which directly incurred in acquiring assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Companys factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

8. PRELIMINARY EXPENSES:

Preliminary Expenses is amortized over a period of ten years.

9. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

10. TAXATION:

11. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

12. EMPLOYEE RETIREMENT BENEFITS:

(i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

13. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

14. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

15. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

Mar 31, 2007

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting Principles.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual basis except rates & taxes which is accounted on cash basis.

2. FIXED ASSETS:

Expenditure which are of capital nature are capitalized at Cost which comprises of purchase price, statutory levies and Other expenses/charges directly incurred in acquiring such Assets. Modvat credit on eligible assets acquired has been Reduced from the cost of the asset.

3. DEPRECIATION:

Depreciation is provided on cost, as reduced by Modvat credit Claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided Depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

4. REVENUE RECOGNITION:

Sale of goods is recognized at the point of despatch of goods to the customers from the Companys factory. Income from Interest on advances, royalty & technical charges, consultancy and service charges1 are accounted on accrual basis.

5. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to statutory authorities are recorded as expenditure.

6. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered

Accountants are as follows: .

a) Raw materials, stores or consumables are valued at landed cost or net realizable value whichever is lower.

b) Work-in-progress is valued at cost of production Consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

c) Finished Goods is valued at cost of production consisting of Raw material costs inclusive of Modvat, - Excise duty, Manufacturing and Administrative overheads or at net realizable price whichever is lower.

7. DEFERRED REVENUE EXPENDITURE:

ISO and TS Certification expenses is amortized over a period of of three years.

8. CONTINGENT LIABILITIES:

All liabilities have been provided for, except liabilities Of contingent nature which have been disclosed at there Estimated value in the Notes to Accounts.

9. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

10. EMPLOYEE RETIREMENT BENEFITS:

i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss Account on accrual basis. .

ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount Involved is insignificant.

11. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs(AS 16) issued by The Institute of Chartered Accountants of India.

Mar 31, 2006

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting Principles.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual basis except rates & taxes which is accounted on cash basis.

2. FIXED ASSETS:

3. DEPRECIATION:

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided Depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

4. REVENUE RECOGNITION:

5. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to statutory authorities are recorded as expenditure.

6. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

a) Raw materials, stores or consumables are valued at landed cost or net realizable value whichever is lower.

b) Work-in-progress is valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

c) Finished Goods is valued at cost of production consisting of Raw material costs inclusive of Modvat, Excise duty, Manufacturing and Administrative overheads or at net realizable price whichever is lower.

7. DEFERRED REVENUE EXPENDITURE:

The advertisement and sales promotion expenses in connection wtih promotion of sale products are amortized over a period of three years.

8. CONTINGENT LIABILITIES:

All liabilities have been provided for, except liabilities of contingent nature which have been disclosed at there estimated value in the Notes to Accounts.

9. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

10. EMPLOYEE RETIREMENT BENEFITS:

i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss Account on accrual basis.

ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

11. BORROWING COST:

The Borrowing cost has been treated.

Mar 31, 2003

1. ACCOUNTING POLICIES :

(i) Accounting policies are consistent with generally accepted Accounting Principles.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual basis.

2. FIXED ASSETS:

3. DEPRECIATION:

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commi- ssioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

4. REVENUE RECOGNITION :

Sale of goods is recognised at the point of despatch of goods to the customers from the Company's factory. Consignment Sales are accounted on receipt of Sales Patti from t h e Consignee. Income from Interest on advances, royalty & technical charges, consultancy and service charges are accounted on accrual basis.

5. SALES:

Sale comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to Statutory authorities are recorded as expenditure.

6. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

a) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

b) Work-in-progress is valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

c) Finished Goods is valued at cost of production consisting of Raw material costs inclusive of Modvat, Excise duty, Manufacturing and Administrative overheads or at net realisable price whichever is lower.

7. DEFERRED REVENUE EXPENDITURE:

Public issue expenses is amortised over a period of ten years and advertisement and sales promotion expenses in connection with promotion of sale products are amortised over a period of three years.

8. CONTINGENT LIABILITIES:

All liabilities have been provided tor, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

9. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

10. EMPLOYEE RETIREMENT BENEFITS:

Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

ii) Liability for Gratuity is recognised on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

11. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs(AS 16) issued by The Institute of Chartered Accountants of India. During the year, there no specific borrowings attributable to qualifying assets since the Assets acquired has taken a short period of time for their intended use, no capitalization of interest on borrowed funds has been carried out.

Mar 31, 2002

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting Principles.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and income & Expenditure are accounted for on accrual basis.

2. FIXED ASSETS:

3. DEPRECIATION:

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

4. REVENUE RECOGNITION:

Sale of goods is recognised at the point of despatch, of goods to the customers from the Companys factory. Consignment Sales are accounted on receipt of Sales Patti from the Consignee. Income from Interest on advances, royalty & technical charges, consultancy and service charges are accounted on accrual basis.

5. SALES:

Sale comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to Statutory authorities are recorded as expenditure.

6. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

a) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

b) Work-in-progress is valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

7. DEFERRED REVENUE EXPENDITURE:

Public issue expenses is amortised over a period of ten years and advertisement and sales promotion expenses in connection with promotion of sale products are amortised over a period of three years.

8. CONTINGENT LIABILITIES:

Ail liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

9. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

10. EMPLOYEE RETIREMENT BENEFITS:

i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

11. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India. During the year, there were no specific borrowings attributable to qualifying assets since the assets acquired has taken a short period of time for their intended use, no capitalization of interest on borrowed funds has been carried out.

Mar 31, 2001

1. FIXED ASSETS AND DEPRECIATION :

Expenditure which are of capital nature are capitalised at cost which comprises of purchase price statutory levies and other expenses/ charges directly incurred in acquiring such assets. Modvat credit on eligible assets acquired has been reduced from the cost of the asset. During the financial year 1994-95 , the company had revalued the land at Rs. 65 Lakhs as per the revaluation certificate issued by chartered Engineers and approved Valuers. In the financial year 1993-94, the company had revalued one machinery and mould at Rs. 75.00 Lakhs and Rs. 9.00 Lakhs respectively.

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluaton.

2. REVENUE RECOGNITION :

Sale of goods is recognised at the point of despatch of goods to the customers from the Company s factory. Consignment Sales are accounted on receipt of Sales patti from the Consignee. Income from Interest on advances, royalty & technical charges, consultancy and service charges are accounted on accrual basis.

3. SALES :

Sale comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to authorities are recorded as expenditure.

4. INVENTORIES :

Inventories are valued as follows :

a) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

b) Work-in-progress is valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

c) Finished Goods is valued at cost of production consisting of Raw material costs inclusive of Modvat, Excise duty,Manufacturing and Administrative overheads.

5. DEFERRED REVENUE EXPENDITURE :

Public issue expenses is amortised over a period of ten years and advertisement'and sales promotion expenses in connection with promotion of sale products are amortised over a period of three years.

6. CONTINGENT LIABILITIES :

All liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

7. FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

8. EMPLOYEE RETIREMENT BENEFITS :

i) Company 's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

ii) Liability for gratuity is recognised on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved 's insignificant.

Mar 31, 2000

1. FIXED ASSETS AND DEPRECIATION:

Expenditure which are of capital nature are capitalised at cost which comprises of purchase price, statutory levies and other expenses/charges directly incurred in acquiring such assets. Modvat credit on eligible assets acquired has been reduced from the cost of the asset. During the financial year 1994-95, the company had revalued the land at Rs. 65 Lakhs as per the revaluation certificate issued by Chartered Engineers and approved Valuers. In the financial year 1993-94, the company had revalued one machinery and mould at Rs. 75.00 Lakhs and Rs.9.00 Lakhs respectively. Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

2. REVENUE RECOGNITION:

Sale of goods is recognised at the point of despatch of goods to the customers from the Company's factory. Consignment Sales are accounted on receipt of sales patti from the Consignee. Income from Interest on advances, royalty & technical charges, consultancy and service charges are accounted on accrual basis.

3. SALES:

Sales comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to authorities are recorded as expenditure.

4. INVENTORIES:

Inventories are valued as follows :

a) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

b) Work-in-progress is valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative overheads.

c) Finished Goods is valued at cost of production consisting of Raw material costs inclusive of Modvat, Excise duty, Manufacturing and Administrative overheads.

DEFERRED REVENUE EXPENDITURE :

Public issue expenses is amortised over a period often years and advertisement and sales promotion expenses in connection with promotion of sale of products are amortised over a period of three years.

CONTINGENT LIABILITIES:

All liabilities have been provider for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

EMPLOYEE RETIREMENT BENEFITS:

i) Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

Mar 31, 1999

1. FIXED ASSETS AND DEPRECIATION :

Expenditure which are of capital nature are capitalised at cost which comprises of purchase price, statutory levies and other expenses charges directly incurred in acquiring such assets. Modvat credit on eligible assets acquired has been reduced from the cost of the asset. During the financial year 1994-95, the company had revalued the land at Rs. 65 Lakhs as per the revaluation certificate issued by Chartered Engineers and approved Valuers. In the financial year 1993.94, the company had revalued one machinery and mould at Rs. 75.00 Lakhs and Rs.9.00 Lakhs respectively.

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in Schedule XIV of the Companies Act, 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

2. REVENUE RECOGNITION :

Sale of goods is recognised at the point of despatch of goods to the customers from the Company's factory. Income from Interest on advances, royalty & technical charges, consultancy and service charges are accounted on accrual basis. Consignment Sales are accounted on receipt of sale patty from the consignee.

3. SALES :

Sale comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to authorities are recorded as expenditure.

4. INVENTORIES :

Inventories are valued as follows :

a) Finished goods and work-in-progress are valued at cost of production consisting of Raw material costs inclusive of Modvat, Manufacturing and Administrative Overheads.

b) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

5. DEFERRED REVENUE EXPENDITURE :

Public issue expenses is amortised over a period of ten years and advertisement and sales promotion expenses in connection with promotion of sale products are amortised over a period of three years.

6. CONTINGENT LIABILITIES :

All liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

7. FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

8. EMPLOYEE RETIREMENT BENEFITS :

i) Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

Mar 31, 1998

1. FIXED ASSETS AND DEPRECIATION:

During the financial year 1994-95, the company had revalued the land at Rs. 65 Lakhs as per the revaluation certificate issued by Chartered Engineers and approved Valuers. In the financial year 1993-94, the company had revalued one machinery and mould at Rs. 75.00 Lakhs and Rs. 9.00 Lakhs respectively.

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use, on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

Expansion work relating to Pondicherry project has been going on during the year and amount expended towards the same has been shown under the head Capital Work-in-progress. A portion of the building which has been completed has been capitalised based on the amount certified by the Architects, and depreciation on the same has been provided from the date of completion.

2. REVENUE RECOGNITION:

3. SALES:

Sale comprises sale of goods and include applicable excise duty and local taxes. Consequently duties paid to authorities are recorded as expenditure.

4. INVENTORIES:

Inventories are valued as follows:

a) Finished goods and work-in-progress are valued at cost of production consisting of Raw material costs inclusive of Modvat, manufacturing and Administrative overheads.

b) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

5. DEFERRED REVENUE EXPENDITURE

Public issue expenses is amortised over a period of ten years and advertisement and sales promotion expenses in connection with promotion of sale products are amortised over a period of three years.

6. CONTINGENT LIABILITIES:

All liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts.

7. MISCELLANEOUS EXPENDITURE:

Preliminary expenses are written off in equal instalments over a period of eight years.

8. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

9. EMPLOYEE RETIREMENT BENEFITS:

i) Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on accrual basis.

Mar 31, 1997

1. FIXED ASSETS AND DEPRECIATION :

Expenditure which are of capital nature are capitalised at cost which comprises purchase price, statutory levies and other expenses/charges directly incurred in acquiring such assets. Modvat credit on assets acquired has been reduced from cost. During the financial year 1994-95, the company had revalued the land at Rs.65 Lakhs as per the revaluation certificate issued by chartered engineers and approved valuers. In the financial year 1993-94, the company had revalued one machinery and mould at Rs.75 Lakhs and Rs. 9 Lakhs respectively.

Depreciation is provided on cost as reduced by Modvat credit claimed on assets, from the date the assets have been acquired/commissioned and put to use on the Straight Line method, at the rates and the manner specified in Schedule XIV of the Companies Act, 1956. The company has provided depreciation based on book value upto the date of revaluation and on the enhanced value from the date of revaluation.

2. REVENUE RECOGNITION :

3. SALES :

Sale comprises sale of goods and include applicable excise duty and local taxes Consequently duties paid to the authorities are recorded as expenditure.

4. INVENTORIES :

Inventories are valued as follows :

(a) Finished goods and work-in-progress are valued at cost of production consisting of Raw material costs inclusive of Modvat, manufacturing and administrative overheads.

(b) Raw materials, stores or consumables are valued at landed cost or net realisable value whichever is lower.

5. DEFERRED REVENUE EXPENDITURE :

Public issue expenses, is amortised over a period of ten years and advertisement and sales promotion expenses in connection with launching of new products are amortised over a period of three years.

6. CONTINGENT LIABILITIES :

All liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the notes to Accounts.

7. MISCELLANEOUS EXPENDITURE :

Preliminary expenses are written off in equal instalments over a period of eight years.

8. FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

9. EMPLOYEE RETIREMENT BENEFITS :

i) Company's contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss account on actual payment basis.

Mar 31, 1996

1. FIXED ASSETS AND DEPRECIATION:

Expenditure which are of capital nature are capitalised at cost which comprises purchase price, statutory levies and other expenses/charges directly incurred in acquiring such assets. During the financial year 1994-95, the company had revalued the land at Rs.65 Lakhs as per the revaluation certificate issued by Chartered Engineers and Approved Valuers. In the financial year 1993-94, the company had revalued one machinery and mould at Rs. 75.00 Lakhs and Rs. 9.00 Lakhs respectively.

Depreciation is provided from the date the assets have been acquired/commissioned and put to use on the Straight Line method, at the rates and the manner specified in schedule XIV of the Companies Act 1956. The company has provided depreciation based on book value upto the date of revaluation and on enchanced value from the date of revaluation. The company has changed the method of providing the Depreciation from written down value method to Straight line method during the year.

2. REVENUE RECOGNITION

Sale of goods is recognised at the point of despatch of goods to the customers from the Company's factory. Income from Interest on Advances, Royalty & Technical charges, consultancy and Service charges are accounted on accrual basis.

3. SALES:

Sale comprises sale of goods and include applicable Excise duty and Local taxes. Consequently duties paid to the authorities are recorded as expenditure.

4. INVENTORIES:

Inventories are valued as follows:

(a) Finished goods and work in progress are valued at cost of production consisting of Raw material costs inclusive of Modvat, manufacturing and Administrative overheads.

(b) Raw materials, stores or consumables are valued at cost or net realisable value whichever is lower.

5. DEFERRED REVENUE EXPENDITURE:

Public Issue Expenses, is amortised over a period of ten years and Advertisement and Sales Promotion Expenses in connection with launching of new products are amortised over a period of three years.

6. MISCELLANEOUS EXPENDITURE:

Preliminary expenses are written off in equal instalments over a period of Eight years.

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