a) Basis of Accounting.
The accounts have been prepared under the historical cost convention
and materially complies with the mandatory accounting standards issued
by the Institute of Chartered Accountants of India.
b) Fixed Assets and Depreciation.
Expenditure which are of a capital nature are capitalized at cost and
any directly attributable cost of bringing the assets to its working
condition for the Intended use.
Depreciation-is provided on a straight line method at the rates and In
the manner specified under Schedule XIV of the Companies Act, 1956
except the additions made during the current year on which no
depreciation was charged.
Investments are valued at its acquisition cost.
Inventories are valued at lower of cost or net realisable value except
stores and spares which are valued at cost.
e) Retirement Benefits.
Contribution to Provident Fund is made monthly at predetermined rate to
the Provident fund Department and debited to the profit and lose
account on an accrual basis. The amount of gratuity has not been
ascertained and even on accrual basis the amount have not been
f) Contingent Liabilities.
All known liabilities are provided for in the accounts except
liabilities of a contingent nature which have been adequately disclosed
in the accounts.
Sales are inclusive of Royalty.