(a) The Company follows Mercantile System of accounting and recognises
Income & Expenditure on accrual basis.
(b) Financial statements are based on historical cost. These cost are
not adjusted to reflect the impact of the changing value in the
purchasing power of money.
(c) Revenue Income are generally accounted on accrual basis as and when
they are earned.
(d) Cost expenditure is generally accounted on accrual basis except-
i) in specific cases of expenditure incurred against which a definite
benefit is expected to follow into future periods, such sums are
treated as Deferred Revenue Expenditure and charged to Revenue Account
over the expected duration of benefit.
ii) Gratuity is accounted for on payment basis.
(e) Fixed Assets and Depreciation:
(i) All the fixed assets are stated at cost less depreciation, cost
includes purchase price, inward fright expenses incidental to
acquisition, installation and finance cost.
(ii) In respect of all fixed assets, depreciation charged on straight
line basis in in the manner specified in Schedule XIV of the Companies
(iii) In respect of addition/sale to the fixed assets on prorata
basis with reference to the date of addition/sale fixed assets.
(f) Investments Investment is stated at cost.
(g) Inventories valuation
Raw material, stores & spare parts are valued at cost.
Finished goods are valued at lower of cost or realised value.
Sales realisation includes excise duty, sales tax and other charge ;
(i) Sales Tax
Quantum of Sales Tax Exemption is not ascertainable, as such liability
of sates tax has been taken as per return submitted. The demand if any
on completion of assessment will be accounted for on accrual basis.
(j) Income Tax
Liability of Income tax has been taken as per return submitted. The
demand if any on completion of assessment will be accounted for on
(k) Events occurring after Balance sheet date-
Events occurring after Balance sheet date have been consideration in
preparation of financial statements.