a) Accounting Convention
The financial statements are prepared under historical cost convention,
on accrual basis, in accordance with the generally accepted accounting
principles in India and to comply with the Accounting Standards
prescribed in the Companies (Accounting Standards) Rules, 2006 issued
by the Central Government in exercise of the power conferred under
sub-section (1) (a) of section 642 and the relevant provisions of the
Companies Act, 1956 (the Act).
b) Use of Estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
the financial statements and the results of operations during the
reporting periods. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from those estimates and revisions, if any, are recognized in
the current and future periods.
c) Fixed Assets & Depreciation.
(i) Fixed assets are stated at cost less accumulated
depreciation/amortization. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
(ii) Fixed assets under construction, advances paid towards acquisition
of fixed assets and cost of assets not ready for use as at the year
end, are disclosed as capital work-in progress.
(iii) Depreciation on fixed assets is provided on WDV method on pro
rata basis from the date of addition at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Investments classified as long-term investments are stated at cost.
Diminution in the investment has not been worked out and provided.
Inventory comprises of raw materials, Semi finished and Finished goods
are valued at Cost or net realizable Value, whichever is lower.
Consumable stores are written off in the year of Purchase.
f) Employee Benefits
Provision for gratuity has not been made as none of the employee have
completed the minimum qualified period of services.
g) Claims, Demands and Contingencies
Details of disputed and or contingent liabilities are not available.
h) Provision for Current and Deferred Tax :
i) Tax liability of the company is estimated considering the provision
of Income Tax Act, 1961.
ii) Deferred tax is recognized subject to consideration of prudence, on
timing difference being the difference between taxable incomes and
accounting income that originate in one period, and are capable of
reversal in one or more subsequent period(s). Such deferred tax is
quantified using rates and laws enacted or substantively enacted as at
the end of the financial year.
i) Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the Profit and Loss Account. If at the balance sheet date
there is an indication that a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
j) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economics benefits will flow to the company and the revenue can be
Sale of Goods:
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales re reported net
of Sales Tax and Excise Duty.
Revenue is recognized on a time proportion basis talking into accounts
the amount outstanding and the rate applicable.
k) Foreign currency transactions
Transactions in foreign currency and non-monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transactions are recognized as
income or as expenses in the year in which they arise.