(i) These accounts are prepared on the historical cost basis and on the
accounting principles of going concern.
(ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
(i) The Company follows the Mercantile system of Accounting and
recognises income and expenditure on accrual basis.
(ii) Revenue is not recognised on the grounds of prudence, until
realised in respect of liquidated damages, delayed payments as recovery
of the amounts are nto certain.
Foreign Exchange Transaction:
(i) Realised gains & loss in foreign exchange transactions are
recognised in Profit & Loss Account.
Investments are stated at cost i.e. cost of acquisition, inclusive of
expenses incidental to acquisition wherever applicable.
(i) Fixed assets are stated at costless accumulated depreciation. Cost
of acquisition of fixed assets is inclusive of freight duties taxes and
incidental expenses thereto.
Depreciation and Amortisation:
i) Depreciation is provided on straight line method on pro-rata basis
and at the rates and manner specified in the Schedule XIV of the
Companies Act, 1956.
(ii) Preliminary Expenses are amortised over the period of 10 years.
(iii) Public Issue Expenses are amortised over the period of 10 years.
Inventories are valued at cost or market price whichever is lower.
The current charges for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax asset
and liability is recognised for future tax consequences attributable to
the timing differences that result between the profit offerred for
income tax and the profit as per the financial statements. Deferred tax
asset & liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the Balance Sheet date.
Earning Per Shate:
The earning considered in ascertaining the companies earning per share
comprise net profit after tax. The number of shares-used in computing
basic earning per share is the weighed average number of shares
outstanding during the year.
No provision for gratuity as been made as no employees has put in
qualifying period of same per entitlement of gratuity.