The financial statements have been prepared on the basis of going
concern, under the historic cost - convention on accrual basis, to
comply in all material aspects with applicable accounting principles in
India, the Accounting Standards issued by the Institute of Chartered
Accountants of India &nd the relevant provisions of the Companies Act,
1956. The Unit has discontinued its operation from Octobcr 2008. ,
b) FIXED ASSETS
Fixed assets are carried at cost less depreciation. Expenditure which
are of a capital nature capitalised at a cost which comprises of
purchase price, levies (except CENVAT) and any directly attributable
cost of bringing the assets to its working condition for the intended
use. Borrowing costs are capitalised during the period of construction
of qualifying assets.
Depreciation is provided on straight-line basis at the rates prescribes
by schedule XIV to the Companies Act, 1956. These rates are applied to
the original cost and depreciation has been provided on pro-rata basis
with reference to the month of addition/installation /reduction of
assets during the year.
Investments are valued at cost. -
Raw materials are valued at lower of cost and net realisable value.
Work in progress is carried at cost. .....
Finished goods are valued at lower of cost and net realisable value.
Packing materials and Stores and Spares are valued at tost.
- FOREIGN CURRENCY TRANSACTIONS
No foreign currency transactions.
First charge on all the movable and immovable assets of the company,
present and future subject to prior charge on specified movables in
favour of the company''s bankers for working facilities, ranking pari
passu in favour of MCB/Reliance Asset Reconstruction Company
Limited/Typhoon Financial Services Limited for their term loan / term
As per the provisions of the Income Tax Act, 1961 the Company has
unabsorbed depreciation. As a conservative business policy, the Company
has not recognized the same as Deferred Tax Assets
The company has secured an order of the Honourable High Court for
arbitration proceedings to be commenced within time limit specified in
the said order for the balance disputed insurance claim of Rs.
7,000,000/-. The insurance company''s appeal in the matter heard by
the larger Bench and decided in favour of the Company. Moreover, there
are several Supreme Court judgements to support the contention of the
company in the matter. Hence, the company is confident of recovering
the balance claim amount with interest.