1. SIGNIFICANT ACCOUNTING POLICIES:
A. Basis of Preparation of Financial Statements.
1. The 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.
2. The presentation of financial statements in conformity with
generally accepted accounting principles require the management to make
estimates and assumptions that affects the amounts reported in the
financial statements and accompanying notes.. Although these estimates
are based on management's best knowledge of current events and actions,
the company may undertake in future, actual results ultimately may
differ from the estimates.
B. Fixed Assets.
Fixed Assets have been valued at Historical cost. The cost includes
expenses relatable to the cost of acquisition and prorata
capitalization of revenue expenditure attributable in bringing the
assets to working condition, suitable for its intended use.
The Company provided depreciation on W.D.V. method at the rates and in
the manner prescribed in Schedule XIV of the Companies Act, 1956.
D. Long Term Investments.
No investments are made by the Company.
Raw materials, Rough blocks are valued at cost or market value
whichever/ Lower Finished Goods have valued at cost. Export rejects
have been sold in local market at prices lower compared to production
costs and such local sales has resulted in loss which has not been
ascertained due to non-segregation of variety-wise rejects and sale.
The Company has obtained requisite permission from concerned
authorities to sell the said goods in local market.
DESCRIPTION QUANTITY SALE VALUE
Various Colours of Rs.
Various sized slabs 6486.213 Sqmts. Rs. 4325608/-
F. Revenue Recognition.
Revenue from sale of Finished Goods, i.e., Slabs and tiles etc., Is
based on the material supplied and billed to the Consumer as per the
terms agreed mutually.
G. Foreign Exchange Transactions.
Export sales denominated in Foreign Currencies are recorded at the bill
discounted rates for bills realized subsequently and pending
Expenditure accruing for the year ascertainable accurately on a cut off
date is recognized and provided in the accounts.
I. Retirement Benefit's to Employees.
The Company's contribution to provident fund is charged to profit and
loss account and the company has not made any provision towards future
liability under gratuity payable to employees and also leave encashment
due to employees.
J. Contingent Liabilities.
Contingencies, which can be reasonably ascertained, are provided for,
if in the company's opinion there is probability that the future
outcome may be materially determined. Bonds have been executed in
favour of Deputy Commissioner of Customs for Rs. 2.00 Crores.
K. Deferred Income Tax.
Being 100% E.O.U there is no tax liability and hence provision towards
deferred taxes are not made.