1. System of Accounting: The Company mainly follows the cash system of
accounting and generally recognizes income /revenue and
expenditure/cost on cash basis. Financial statements are based on
historical cost. These costs are not adjusted to reflect the impact of
the changing value in the purchasing power of the money.
2. Fixed Assets and Depreciation: Fixed assets are stated at cost less
depreciation/amortization. Depreciation has been provided on written
down value basis in accordance with Section 205 (2) (a) of the
Companies Act, 1956 at the rates specified in Schedule XIV to the
Companies Act, 1956 on prorata basis with reference to the date of
additions/deletions of the Assets.
3. Investments: Investments are stated at cost of acquisition.
4. Contingent Liabilities: All known liabilities wherever material are
duly provided for.