a) Basis of Accounting
The accounting of the company are prepared under the historical cost
convention and are in accordance with the applicable accounting
slandered and accounting actual basis of accounting is followed for
recognition of income and expenses except where otherwise stated and
where the exact quantum is not ascertainable. Expenditure on issue of
share capital if any is accounted when actually incurred.
b) Revenue Recognition
(i) Sales and job work are recognized at the time of invoicing thereof
up on the passage of title to the customers, clients, Experts sales are
recognised according to the date of bill of loading or the Airways Bill
as the case may be as adjusted by the
(ii) Actual realization if within one year.
(iii) Local sales are recorded at the price inclusive of excise duty
and freight wherever separately not collected.
c) Fixed Assets
Fixed Assets are stated all capitalized costs relating and attributable
directly or indirectly to acquisition and installation thereof as
reduced by the depreciation thereon.
d) Depreciation / Amortization
Depreciation/ Amortization on Fixed assets, other than Freehold land is
provided on written down value method at the rates specified in
Schedule XIV to the companies Act, 1956 (as amended)
Inventories are valued as follows :
(i) Raw materials, stores and Spares at cost.
(ii) Work in progress at tower of estimated cost or net realizable
(iii) Waste Materials, Damaged goods Script if any at net estimated
(iv) Finished goods at lower of cost or market value.
Investments that are interested to be held for more than a year from
the date of acquisition are classified as long term investments are
carried at cost less any provision for permanents value. Investments
other than long term investments are being current investments are
being investments are valued at the cost or fair market value whenever
g) Assets & Liabilities
The Assets and Liabilities are taken at the book value certified by the
h) Foreign Currency Transactions
Foreign Currency Transactions are normally recorded at the exchange
rate prevailing on the Date of transaction or envision, as the case may
i) Taxes on Income
(i) Current Tax
Provision for Income Tax determined in accordance with the provisions
for Income Tax Act, 1961.
(ii) Differed Tax Provision
Differed Tax as recognized on timing differences between the accounting
income and the taxable income for the year, and qualified using the tax
rates and laws effected or substantially effected on the Balance Sheet
date. Differed Tax Assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such Differed Tax Assets
j) Miscellaneous Expenditure
Preliminary expenses / shares and deferred revenue expenses etc., if
any are amortized over a period of 5 years.