1. Method of Accounting
The Company normally follows the mercantile system of accounting and
recognises income and expenditure on accrual basis.
2. Fixed Assets and Depreciation
A. Fixed Assets are stated at cost.
B. Depreciation has been provided on fixed assets on straight line
method at the rates prescribed under schedule XIV of the Companies Act
1956 on Pro-rata basis.
Unquoted investments are valued at cost.
A. Raw materials are valued at cost or market price whichever is low.
B. Stores and consumables are valued at market price.
C. Finished goods are valued at lower of cost or net realisable value.
The value of inventories has been brought down to its realisable value
which is lower than its cost during the year under review.
There are no sales since the company has not carried out any activities
during the year.
8. All Secured Loans have been settled during the year as per the one
time settlement agreement with the Banker.
9. There are no contingent liabilities during the year and hence the
question of disclosure in notes to the financial statements does not
10. Some debtors have been written off and some creditors have been
written back as the transactions with those parties are not expected to
arise in the future. The balance is subject to confirmation.
11. Taxation :
Deferred Tax Asset is not recognised for the year on consideration of
prudence as set out in Accounting Standard 22 on Accounting for Taxes
on Income* issued by the Institute of Chartered Accountants of India.