i. System of Accounting :
The Financial Statements are prepared under the historical cost
convention and accrual concept.
ii. Sales :
Sales are invoiced on delivery of goods to the customers. Invoiced
value of sales including excise duty and VAT.
iii. Fixed Assets and Depreciation :
All fixed Assets are stated at cost inclusive of all installation
expenses incurred relating to acquisition. Depreciation is provided on
straight line method at the rates specified in Schedule XIV of the
Companies Act,1956. Depreciation is charged on pro rata basis on
additions to Assets taken into account the date of additions.
iv. Foreign Currency Transactions :
Transactions in foreign currencies are accounted at the exchange rate
prevailing on the date of transaction. Gains / losses arising out of
fluctuation in the exchange rates are recognized in Profit and Loss
Account in the period in which they arise.
v Inventories :
Stock-in-Trade is valued at cost or net realizable value whichever is
vi. Taxes on Income :
Taxes on Income have been provided as the amount of tax payable in
respect of taxable income for the period. Deferred Tax has been
provided on the timing difference between taxable income and accounting
income subject to consideration of prudence.
vii. Investment :
Investments are stated at cost.