1. Assets leased by the Company in its capacity as lessee, where the
Company has substantially all the risks and rewards of ownership are
classified as finance lease. Such a lease is capitalized at the
inception of the lease at lower of the fair value or the present value
of the minimum lease payments and a liability is recognized for an
equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognized as
operating leases. Lease rentals under operating leases are recognized
in the statement of profit and loss on a straight-line basis.
2. The value on realization of current assets in the ordinary course
of business would not be less than the amount at which they are stated
in the Balance Sheet. According to the management, provision for all
the known liabilities is adequate.
3. Balances in Debtors, Creditors, loans, advances, and other current
assets are subject to confirmation and reconciliation.
4. The Micro, Small and Medium Enterprise Development Act, 2006 has
repealed the provision of interest on delayed payment to small scale
and ancillary industrial undertaking Act, 1993. The management does not
find it necessary to provide for interest on delayed payments to the
suppliers covered by the said Act in view of insignificant amount and
probability of its outgo.
5. Related Party Disclosures, as required by AS-18 are given below: A.
Category I: Holding Company NIL
Category II: Key management Personnel
Remuneration Rs. 1500000
Remuneration Rs. 1440000
Category III: Others (Relatives of Key Management Personnel and
Entities in which the Key Management Personnel have control or
6. The excise duty and sales tax, shown as deduction from turnover,
are total tax on sale of goods for the year.
7. The disclosure of Employee Benefits as per Accounting Standard
15 are as follows;
(A) Defined contribution plans: Provident fund:
The Company has recognized the following amounts in the Profit and Loss
Account for the year:
(i) Contribution to Provident Fund (Employer''s Contribution) Rs. 398820
(B) Defined Benefit Plans
(i) Disclosure of Gratuity Liabilities
The Company has accounted for provision of gratuity based on actuarial
valuation done by Life Insurance Corporation of India amounting to
total liability till date of Rs. NIL.
8. The Company has only one reportable business segment hence no
further disclosure is required under Accounting Standard-17 on Segment
9. The management has made full inquiries and is of the view that
assets of the Company in form of fixed assets and Inventories are good
in nature, and are stated at appropriate value of the respective assts;
and there is no necessity as to impairment / write down provision in
10. The previous year''s figures have been regrouped / rearranged /
reclassified wherever considered necessary to correspond with the
figures of current year.
11. Notes 1 to 25 form an integral part of the accounts and have been