1. Method of Accounting
The financial statements have been prepared on accrual basis and at
historical cost in accordance with generally accepted accounting
principles in India and provisions of the Companies Act 1956 read with
the Companies (Accounting Standards) Rules 2006.
The accounts were regrouped according to the requirements of the
revised schedule VI
2. Revenue Recognition
Sales comprises sale of goods and services net of trade discount and
inclusive of Excise duty.
Term Loan from SBI Secured By First Charge on All Fixed Assets (Present
and Future Both Moveable and Immovable.) of The Company
Collateral-second Charge on All Current Assets of the Company
The Term Loans-1 Is Repayable In 12 Quarterly Instalments and out of
which 6 are paid .
The Repayment Commenced from December 2010
The Second Term Loan of Rs 500 Lacs taken on 09.11.2011 and the
Repayable in 10 Quartrely Instalments Commenced from December 2011
The Instalments that were falls Due In the Next 12 Months has been
shown under Current Labilities an amount of Rs 366.64 Lacs was shown
under Current Liabilities
The Loan for Vehicles from ICICI Bank and the Vehicle is Hypothecated
to ICICI Bank the Instalment for the next 12 Months amounting 4.5 Lacs
were Considered under Current Liabilities.
The other Loans are from Directors and their relatives. The Interest
were paid at 15%.
No Part of the Loan Is Repayable Till The Term Loan from the Banks are
INTEREST FREE SALES TAX LOAN IS REPAYABLE AS FOLLOWS:
1. Plant-I - Second Deferment Repayable In 14 Years Commencing from
2. Plant-II - First Deferment Repayable In 10 Years Commenced from
2004 and Second Deferment from April 2015.
3. Plant-III - Repayable In 14 Years Commenced from April 2011.
An Amount Of Rs 198.09 Lacs Represents Repayable In The Next 12 Months
had been shown under Current Liabilities.
The work in progress represents only part of the regular product that
were under production and NOT covered for any reservation of warranty
The finished goods were valued at cost which does not include excise
duty component. The excise duty is neither considered for opening stock
nor closing stock .
This method was followed consistantly by the company.
The Raw materails including traded goods, stores and spares were valued
at cost to the unit.