The accounts are prepared on historical cost basis as a going concern
following the mercantile system of accounting and recognizing income
and expenditure on accrual basis. Accounting policies not specifically
referred to otherwise are consistent and in concurrence with generally
accepted accounting principles.
(B) VALUATION OF INVENTORIES
Inventories are valued at cost or market price whichever is lower.
(C) FIXED ASSETS AND DEPRECIATION
Fixed assets are stated at cost less accumulated depreciation.
Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner provided in schedule XIV to the Companies Act,
Investments are stated at cost of acquisition.
(E) REVENUE RECOGNITION
Sales are recognized when effectively the risk and rewards of ownership
has passed to the buyer.
(ii) Commission/Fee/Discount Income
Commission / Fee/ Discount Income is accounted as and when accrued and
realizable upon raising of bills.
(F) FOREIGN EXCHANGE TRANSACTION
Transactions in foreign currency are recorded at the exchange rate
prevailing at the time of such transactions. Realized gains or losses
on foreign exchange transactions are recognized in the Profit and Loss
account at the time of actual realization of gains/losses.
(G) CONTINGENT LIABILITIES
Liabilities below Rs. 1,00,000/- if any are not recognized as