1. Basis for preparation.
The financial statements have been prepared and presented under the
historical cost Convention on accrual basis in accordance with the
generally accepted accounting Principles in India. These accounting
policies have been consistently applied.
2. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions trjat affect the reported amounts of Assets
and Liabilities, disclosure of contingent liabilities at the date of
financial statements and the reported amounts of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognized in the period in which the results are known/
3. Contingencies & Events arising after the date of the balance Sheet
Since, no contingent expenditure or losses arose after the date of the
balance sheet, no charge has been made in the profit and loss account.
Necessary disclosures, wherever required, have been made in respect of
any such liability.
4. Revenue Recognition
a) Revenue is recognized on dispatch of the materials.
b) The turnover has been presented on Invoice value of goods
sold/services rendered Inclusive of Excise duty and Cess.
c) Income from Investments shall be accounted on accrual basis except
in respect of dividend income which is recognized on actual receipt
5. Fixed Assets & Depreciation
a) Fixed assets were stated at historical cost less accumulated
b) Direct costs relating to assets such as freight, Installation,
Duties and Taxes are included in the cost of the asset.
c) Depreciation on Fixed assets is provided on Straight Line Method in
accordance with the rates of the Depreciation prescribed under schedule
XIV of the Companies Act, 1956.
d) preciation is charged on a pro-rata basis on assets purchased/sold
during the year.
a) Finished goods are valued at Cost or Net Realisable value whichever
b) Raw materials, Stores and spares are valued at Cost, under weighted
Average method taking into account the average of cumulative quantities
and its value recorded during the year.
Long-term investments are valued at cost.
9. Borrowing costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying Assets are capitalized as part of the cost
of such assets. Aqualifying asset is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue in the year in which it is
10. Retirement Benefits
a) Provident fund:
The employees receive benefits from provident fund, which is defined
contribution plan. Both the employee and employer make monthly
contributions to the plan equal to the rates prescribed under the
relevant law. The company has no further obligations under the plan
beyond its monthly contributions.
In accordance with the payment of Gratuity Act, 1972 the company
provides for gratuity, a non-funded, defined benefit retirement plan
(Gratuity plan) covering all employees. The plan, subject to the
provisions of the Act, provides a lump sum payment to vested employees
at retirement or at termination of employment of an amount based on the
respective employees salary and the years of employment with the
company. The company estimates the liability to gratuity and charges to
c) Leave salary:
Leave salary is calculated on the basis of leave credit an employee is
eligible for. Employees are entitled to encash this benefit only upon
retirement. There is no actuarial valuation carried out in respect of
11. Income Tax:
a. Current tax is determined as the amount of tax payable to the
taxation authorities in respect of Taxable income for the period.
b. Deferred tax is recognized subject to the consideration of prudent,
on timing differences between taxable income and accounting income,
that originates in one period and are capable of reversal in one or
more subsequent periods.