a. Basis of accounting: The accounts of company are prepared under
historical cost convention and in accordance with applicable accounting
standards except where otherwise stated. Accounting policies not
specifically referred to are consistent with generally accepted
accounting practices. Revenue / Income and Costs and Expenditure are
generally accounted on accrual basis, as they are earned or incurred.
b. Fixed Assets and Depreciation:
i. All the fixed assets purchased are stated at cost of acquisition
except in case of those assets, which are revalued.
ii. Depreciation: Depreciation of other assets is provided on Written
down value Method , at the rates prescribed by Schedule XIV to the
Companies Act, 1956.
c. Sundry Debtors/Loans and Advances: are stated net of provision for
identified doubtful debts/advances.
d. Revenue Recognition: Sales Receipts is recognized on the basis of
e. Retirement Benefits:
i. The retirement benefit in the form of Provident Fund and Pension
Schemes, whether in pursuance of any law or otherwise, is accounted on
accrual basis and charged to the profit and loss account of the year.
ii. Payment for present liability of future payment of gratuity is
made on actual basis.