i. Accounting Convention:
The accounts have been prepared under historical cost convention and on
going concern basis and comply with the accounting standards referred
to in section 211(3C) of the Companies Act. 1956.
ii) Revenue Recognition:
All the expenses and income to the extent payable or receivable
respectively are accounted on accrual basis.
iii) Fixed Assets:
Fixed Assets are stated at cost, inclusive of incidental expenses, less
Depreciation on fixed assets is provided on the Straight Line Method at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956. During the year depreciation of fixed Assets has not been
provided because of no manufacturing activity was carried out by the
v) Stock of Raw material and Finished Goods are valued at lower of cost
or market value.
vi) Miscellaneous expenditure: 1/10 of Preliminary expenses,
Preoperative expenses and Public Issue expenses are written off during
vii) Provision has not been made for Gratuity as no employee has put in
the qualifying period of service for entitlement of this benefit.
vii) S. S. I Creditors
Pursuant to the amendment to Schedule VI of the Companies Act, 1956, in
March 1999 regarding Disclosure of amounts due to the creditors which
are Small Scale Industries S. S. I.) the Company has initiated the
process of collecting the information from creditors regarding their S.
S. I. status which is still in progress. Therefore, the compilation of
break-up of Sundry creditors between the S. S. I. and other could not