Material Cost

All materials supplied from the
stores or purchased directly for the contract are debited to the concerned contract
account. In the case of transfer of excess material from one contract to other contract,
their costs would be adjusted on the basis of material transfer note, signed both by the
transferee and the transferor foreman. In case the return of surplus material appears
uneconomical on account of high cost of transportation, the same is sold and the
concerned contract account is credited with the sale price. Any loss or profit arising therefrom
is transferred to the Profit and Loss Account.