a) SYSTEM OF ACCOUNTING :
The company follows accrual system of accounting in accordance with
normally accepted accounting principle.
b) FIXED ASSETS :
(i) Fixed Assets are stated at cost .
(ii) Depreciation has been provided on W.D.V. basis at the rates
prescribed in schedule - XIV of the Companies Act, 1956. (as amended)
c) INVESTMENTS :
Current Investments are carried at the lower cost or quoted/fair value.
Long Term Investments are stated at cost. Provision for diminution in
the value of Long Term Investment is made only if such a decline is
other than temporary.
d) TRANSACTION IN FOREIGN CURRENCY:
1) Transactions in foreign currency are recorded for at the exchange
rate prevailing on the date of transaction, Gain/Loss arising out of
fluctuations in the exchange rates are recognized in the Profit and
Loss Account in the period in which they arise & monetary assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of year are recorded at year end rate.
Raw Materials & Packing Materials :
At cost or market price whichever is lower. The cost method is
determined on First in First out basis.
On the basis of cost of convention including expenses incurred for
bringing them in present location and condition or net realisable value
whichever is lower
f) i) Short term employee Benefits are recognised as an expenses in the
Profit & Loss Account for the year in which the related service is
ii) Post employment and other long term employee benefits are
recognized as an expenses in the Profit & Loss Account for the year in
which the employee has rendered service. The expenses is recognized on
g) Contingent Liabilities and Provisions:
Contingent Liabilities are disclosed after a careful evaluation of
facts and legal aspects of the matter involved. Provisions are
recognized when the company has a legal/constructive obligation and on
management discretion, as a result of past event, for which it is
probable that cash outflow may be required and reliable estimate can be
made for the amount of the obligation. Contingent Assets are neither
recognized or disclosed by way of note.
Tax expenses comprises of current deferred and fringe benefit tax,
Current Income Tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred Income Taxes reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
I) Deferred tax is measured based on the tax rates and tax laws enacted
or substantially enacted at the balance sheet date. Differed tax
assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be Realized.