1. Basis of preparation:
The financial statements have been prepared in accordance with the
Accounting Standards issued by the Institute of Chartered Accountants
of India and the relevant provisions of the Companies Act, 1956.
Since the business and assets of the company were sold subsequent to
the Balance Sheet date, the company ceases to be a Going Concern.
Therefore in the financial statements, assets and liabilities are
adjusted to its realizable value. The company is following accrual
basis of accounting
2. Revenue Recognition:
Sales are recognized when the property in the goods passes to the
3. Fixed Assets:
Fixed Assets have been stated at cost less accumulated depreciation
less impairment loss. Cost comprises of purchase price and any cost
attributable to bring the assets in to its working condition or its
Depreciation is provided on Straight Line Basis and at the rates
specified in Schedule XIV of the Companies Act, 1956.
Assets purchased during the year are depreciated on pro-rata basis for
the number of days the assets are put to use during the year.
5. Foreign Currency Transactions:
Transactions in foreign currencies are recorded at the rate prevailing
on the date of the transaction. Monetary items are reinstated at the
rates prevailing in the Balance Sheet date. Exchange gain or losses
arising from such transactions are recognized in accordance with the AS
11 prescribed by the ICAI.
Inventories are valued at net realizable value based on the binding
7. Employees Benefits:
The company has registered itself with Provident Fund Authorities and
accordingly contributions are charged of to revenue.