The Accounts are prepared on the accrual basis under the historical
cost convention in accordance with the provisions of the companies
Act.1956 and with the Accounting Standard issued by the Institute of
Chartered Accountants of India.
The company has not made any sales during the year under review.
c) Basic of Accounting
All the income and expenditure items are accounted for on accrual basis
except stated otherwise.
d) Fixed Assets
Fixed Assets are stated at Cost of acquisition inclusive of inward
freight, duties & taxes and incidental expenses related to acquisition
less excise duty and accumulated depreciation (other than ''land'' where
no depreciation is charged).
Depreciation on fixed assets has been provided at the SLM method at
rates prescribed in Schedule XIV of the Companies Act.1956.
Since the company is not in operations during the year under review, no
depreciation has been claimed by the company in the books of account.
Investments are classified as Long term Investments sub classified as
quoted and unquoted investments and valued at cost.
Inventories are valued as under: i) Raw Material—At cost. ii) Work in
Process- At estimated basis
iii) Finished Goods—At realizable value exclusive of excise
duty(wherever applicable). iv) Store & Spares, Rags etc. - (At
However closing stock of manufactured goods has been valued at
realizable value excluding excise duty. The opening stock does not
include the excise duty on manufactured goods since excise duty is not
paid on such goods during the beginning of the year.