The accounts are prepared under the historical cost convention and
materially comply with the mandatory accounting standards.
The significant accounting policies followed by the company are as
(i) FIXED ASSETS AND DEPRECIATION
Expenditure which are of a capital nature are capitalised at cost.
Depreciation is charged on straight-line method in accordance with the
rates specified under Schedule XIV to the Companies Act, 1956. Full
year''s depreciation is provided in the year of addition and no
depreciation is provided in the year of sale/disposal.
(ii) REVENUE RECOGNITION
Revenue from sales and conversion charges is recognised at the point of
despatch of goods to customers.
(iii) RETIREMENT BENEFITS
Contribution to Provident Fund is made monthly at a predetermined rate
to the authorities and debited to the Profit and Loss Account on
Gratuity has not been provided in the books of accounts.