Fixed assets are carried at cost of acquisition.     

Outstanding foreign currency loans,utilised for purchase of machinery are converted at exchange rates prevailing as at the year end and the exchange fluctuations apportioned to the original cost of the assets acquired through such foreign currency.

Fixed assets acquired with financial assistance/subsidy from outside agencies, either wholly or partly, are taken in the books at net cost to the Company. However, numerical records are maintained in respect of tangible assets acquired free of cost.

Depreciation on fixed assets is charged on straight line method at the rates prescribed in Income Tax Act in respect of assets capitalised upto 1.4.1987 and at the rates prescribed in Companies Act (as amended from time to time), in respect of assets capitalised on or after 2.4.1987.

Inventories relating to stores,spares,loose tools and implements are valued at cost.However, in respect of items not moving for more than 3 years and more than 5 years, a provision of 50% and 90% of the value respectively is made in the accounts towards deterioration in value.

Inventories relating to finished goods are valued at cost or market price whichever is lower; work-in-process and raw materials are valued at cost.

Initial spares received with equipment are caplitalised along with the cost of equipment.

Stationery and medicines are charged off to expenditure on purchase.However ,separate stock registers are maintained showing purchases, issues, etc.

Income from works contracts, including Consultancy Contracts is recognised and accounted for in the year of completion. 

Only income or expenditure relating to previous years exceedign Rs.10,000/- in each case is classified to "Prior period".

Adjustments/transactions relating to the period of construction and arising thereafter involving Rs.1,00,000 and above in each individual case are capitalised.

Company has taken a Group Gratuity-cum-Life Assurance Policy with Life Insurance Corporation of India and the premium payable to keep the policy in force is paid by the Company.

Amounts received as grants-in-aid from the Government and the amount utilised out of the fund for the specific purpose, for which it was granted,will be identified and exhibited separately in the accounts.