(A) Basis of Accounting:
The accounts have been prepared on historical cost concept basis of
accounting the company adopts the accrual system of accounting.
(B) Revenue Recognition: All the income is accounted for on accrual
(C) Expenses: All the expenses including interest and finance charges
are provided on accrual basis.
(D) Fixed Assets: All the fixed assets are valued at cost less
(E) Depreciation: Depreciation is provided on straight line basis at
the rates prescribed under schedule XIV of the Companies Act, 1956.In
respect of leased assets the company follows the method derived from
the guidance note issued by The Institute of Chartered Accountants of
India under which 100% of the cost of the assets is depreciated over
the primary leased period.
(F) Sock In trade (Closing Stock): Stock in trade is valued at market
(G) Preliminary Exps. Preliminary expenses are being amortized over a
period of ten years.