a) Accounting Assumptions
These Financial Statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted
consistently by the company and the accounting standards prescribed by
the Institute of Chartered Accountants of India with revenues
recognized and expenses accounted for on their accrual including
provisions/ adjustments for committed obligation and amount determined
as payable or receivable during the year.
b) Fixed Assets
Fixed Assets are stated at historical cost of acquisition net of
CENVAT, net of APVAT, which is inclusive of freight, installation
charges, duties and incidental expenses and the proportionate
expenditure and interest incurred during the installation period
Depreciation on fixed assets is provided on the basis of straight line
method at the rates provided for in the Schedule - XIV of the Companies
Act, 1956 for the actual period of the usage of the assets, with Plant
& Machinery being treated as continuous processing machinery.
Raw materials are valued at the lower of the cost or market value.
Work-in-process is valued at cost of raw materials and proportionate
overheads. Finished goods are valued at lower of the cost or market
value/net realizable value. Cost includes all charges incurred in
relation to the goods.
e) Research & Development Expenditure
It is the policy of the company to transfer the Research & Development
Expenditure on capital items to assets and depreciation is charged
thereon accordingly at the applicable rates and Revenue expenditure on
Research and development is charged off to Profit & Loss in the year in
which it is incurred. During the year the Company has not incurred
expenditure of capital nature on R&D.
f) Employee Benefits :
Contributions to defined contribution retirement benefit schemes are
generally recognized as an expense when employees have rendered
services entitling them to contributions. Accordingly company provided
for payment of Gratuity. However, the company has not provided for
leave encashment. The company has not made any contribution to these
g) Impairment of Assets
The Company assesses, from time to time, as to whether there is any
indication that an asset is impaired. However the management states
that there has been no impairment loss during the year.