1. The company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
2. These accounts have been prepared on the Historical cost basis and
on the accounting principles as a going concern.
3. Accounting policies unless specially stated to be otherwise are
consistent are in consonance with generally accepted accounting
(B). FIXED ASSETS & DEPRECIATION
Fixed Assets are stated at cost less accumulated depreciation. The
Company is following the straight-line method of depreciation.
Depreciation is provided at the rates as specified in Schedule XIV of
the Companies Act, 1956 on prorata basis. Previous Year figures are
regrouped and rearranged when necessary.
(C). REVENUE RECOGNITION
Sale of products and services are recognized when products are
dispatched or services are rendered.
1. Inventories are valued at cost or Net Realizable ValuefNRV) which
ever is less by using First In First Out method.
2. The Raw Material Stores & Spares are valued at lower of cost or
estimated net realizable value.
3. The Finished Goods have been valued at lower of cost or net
(E). RETIREMENT BENEFITS
Contribution to provident fund is made in accordance with the Provision
of The Employees Provident Fund and Miscellaneous Provision Act, 1952.
The gratuities are accounted for on cash basis.
(G). CONTINGENT LIABILITIES
An interest amount of Rs 3,75,00000/- is the contingent liabilities due
to non listing of preferential share in the stock exchange till date.
Deferred Tax has been recognized as per Accounting Standard 22 issued
Institute of Chartered Accountants of India.