(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
The books of accounts are prepared under the Historical Cost Convention
method using the accrual/ mercantile method of accounting and
accordance with the Companies Act, 1956 and the applicable accounting
standards issued by the Institute of Chartered Accountants of India.
(2) FIXED ASSETS :
All fixed assets are stated at cost. The company has capitalised all
costs relating to the acquisition and installation of the fixed assets.
All expenses prior to commercial production after adjustment of incomes
for the same period have been capitalised and appropriated to fixed
(3) DEPRECIATION :
The Company provides depreciation on its fixed assets on Straight Line
Method at the rates specified in Schedule XIV of the Companies Act,
1956. The depreciation on additions/ deletions have been provided on
pro rata basis from the date of addition/deletion. Individual assets
costing less than Rs.5,000/- acquired during the year have been fully
(4) INVESTMENTS :
Investments are valued at cost. There is a diminution in the value of
long term investments (quoted) held by the company as on 31/03/2011 on
the basis of market value thereof as on that date. No provision is
considered necessary in accounts at this stage since the company
expects such a decline to be temporary.
(5) INVENTORIES :
Inventories are valued as under :
(1) Raw Materials, Stores, Goods in Transit & Work In Process are
valued at cost.
(2) Finished Goods are valued at Cost or Net realisable value which
ever is lower.
(6) SALES :
Sales are recognised when products are dispatched and represent amounts
billed for goods sold including excise duty but excluding VAT.
(7) GRATUITY :
The Company has started staff gratuity scheme with LIC w.e.f
01-05-2009. There are 74 employees in the said scheme.
(8) AMORTISATION OF EXPENSES :
Preliminary & Public Issue Expenses are amortised over a period of ten