1. Recognition of Income & Expenditure: The Financial Statements have
been prepared under the historical cost convention in accordance with
applicable Accounting Standards in India and the provisions of the
Companies Act, 1956 . The Company generally follows mercantile system
of Accounting and recognizes significant items of income and
Expenditure on accrual basis .
2. Use of Estimates: The presentation of Financial Statements in
conformity with the generally accepted accounting principles requires
estimates and assumption to be made, that affect the reported amount of
assets and liabilities on the date of financial statements and the
reported amount of revenues and expenses during the period .
Differences between the actual result and estimates are recognized in
the period in which the results are known/materialized.
3. Fixed Assets: Fixed Assets are stated at cost net of Modvat/ Cenvat
and including expenses related to acquisition, installation less
4. Depreciation: Depreciation on Fixed Assets has been provided on
Written Down Value Method at the rates prescribed in the Schedule XIV
of the Companies Act, 1956.
5. Impairment of Assets: Consideration is given at Balance Sheet date
to determine whether there is any indication of impairment of the
carrying amount of the Company''s Fixed Assets. If any indication
exists, an asset''s recoverable amount is estimated. An impairment
loss is recognized whenever the carrying amount of assets exceeds the
6. Investments: Long term Investment is valued at cost.
7. Inventory valuation: Inventories are valued at Cost or estimated
realizable value which ever is lower.
8. Foreign Currency Transaction: There was no foreign currency
transaction during the year.
9. Treatment of Retirement Benefits: No provision for Retirement
benefits has been made as at employees has not put in the qualifying
period of service for entitlement of this benefit.
10. Borrowing Cost: Borrowing Cost that is attributable to the
acquisition or construction of qualifying assets are capitalized as
part of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowings costs are charged to revenue.
11. Taxes on Income: Provisions for current Tax is made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Deffered tax is recognized on timing difference
between the accounting income and taxable income for the year and
quantified using the tax rates and Jaws enacted or substantively
enacted as on the Balance Sheet date ; and the assets if arising ,is
recognized if there being reasonable certainty of its absorption
against profits expected to be earned in the not too distant future
12. Earnings per Share: In accordance with the Accounting Standards 20
Earning per Share issued by the Institute of Chartered
Accountants of India, basic earnings per share is computed using the
weighted average number of shares outstanding during the year.
13. Treatment of Continent Liability: Contingent liabilities are not
provided for. These are being disclosed in the Notes on Accounts.