A. BASIS OF ACCOUNTING:-
Financial statement is prepared under the historical cost conversion.
The company follows mercantile systems of accounting and recognized
income & expenditure on accrual basis except in case of significant
uncertainties relating to income.
B. REVENUE RECOGNITION :-
Sales are recognized on completion of sale of goods and are recorded
net of vat.
C. FIXED ASSETS :-
Fixed assets are stated at cost. Cost of acquisition in inclusive of
freight, duties, taxes and other directly attributable cost incurred to
bring the assets to their working condition for intended use. During
the year Company has disposed off Fixed Assets held by the co.
D. DEPRECIATION & AMORTIZATION:-
Depreciation is provided up to the date of sold on Written Down Value
Method on fixed Assets at the rate specified in Schedule XIV to the
companies Act, 1956.
No Amortization of preliminary or preoperative expenses as there are no
balance in these Accounts.
E. INVESTMENT:- Investment are stated at cost.
F. INVENTORIES :-
Inventories of shares & securities are valued at cost.
G. RETIREMENT BENEFITS :-
Liabilities in respects of Gratuity & other retirement benefits is not
provided in the Books of Account.
H. CONVERSION OF TRANSACTION IN FOREIGN CURRENCY:- No Foreign currency
transaction done during the year.
I. BORROWING COST:-
No Term Loan , Secured or unsecured loan taken for expansion and
addition of Fixed Assets J. DIVIDEND :-
Dividend income is recognized when the right to receive the same is
established. During the year there is no receipt of Dividend income.
During the year company has provided interest '' 2,03,69,965.51 i.e.
difference of excess liabilities raised for amount payable on OTS
Scheme with Charotar Nagrik Sahkari Bank Ltd. After adjusting FD and FD
Interest accured there on.
L. TAX PROVISION:-
As company has incurred loss during the year. Hence no tax provision is
made. Due to loss in current year no MAT provision is required to be
made by the company. Further in view of loss carry forward of the
previous year no deferred tax provision is made by the company.