1.A The company follows the mercantile system of accounting and
recognises Income and Expenditure on an accrual basis except in case of
B. The accounts of the company have been prepared based on the going
concern concept and the company is operating at a low capacity
2. REVENUE RECOGNITION
Revenue from the sale of manufacture and traded products are recognised
upon passage of title to the customer and generally coincides with the
delivery and acceptance.
3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation. The cost
of an asset comprises purchase price and any directly attributable cost
of bringing the assets to its present condition or intended use.
The fixed assets includes a sum ofRs. 13515861- work in progress during
the FY 2011-12 and Rs. 2154999]-was for the FY 2010-11..
a. Depreciation has been provided on straight line method at the rates
prescribed in Schedule of the Companies Act, 1956 as amended vide
Notification No. 756[E] dated 16th December 1993. No depreciation has
been provided on the revaluation cost of the assets.
b. Depreciation on additions is being provided on prorata basis from
the date of such additions.
4. TECHNICAL KNOW-HOW FEES
No technical know-how fee is paid during the year.
Investment Rs, 17.65 lacs held on a long term basis and are valued at
cost of acquisition since the shares are not quoted in any exchange and
also to the companies where most of the Directors are common.
Stores and spares purchased are charged to Profit & Loss account in the
year of purchase as the quantum is not material.
The company has done an export sales ofRs. 5622753/- to Nepal country.
8. RESEARCH AND DEVELOPMENT EXPENDITURE
No research and development expenditure is incurred during the year.
9. RETIREMENT BENEFITS
a. Retirement benefits are accounted for as and when paid. .
b. Provision of Gratuity has not been made since it is paid as and
C. Provident Fund contributions Rs. 283036/- and ESI Rs. 15963/- are
payable as on 31.3.2012.
d. Accounting policies not specifically referred to are consistent
with generally accepted'' accounting practices.
10. PROPOSED DIVIDEND
No provision has been made for the payment of Dividend.
11. PROVISION FOR TAXATION
The company have profit ofRs. 342057- as per P&L account during the
year after adjustment and will pay Income Tax as per separate