1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accompanying financial statement have been prepared under the
historical cost convention, going concern and on the accrual basis of
accounting in accordance with the provisions of the Companies Act, 1956
& comply with the accounting standards issued by the Institute of
Chartered Accountants of India to the extent applicable.
1.2 ACCOUNTING ESTIMATES
The preparation of the financial statements in accordance with
generally accepted accounting principles often requires that Company
officials makes estimates & assumption that affect the reported amount
of Assets & Liabilities and disclosure of contingent Assets and
liabilities as on the date of financial statement & the reported
amounts of revenue & expenses. During the reported period Company
officials believes that the estimates used in the preparation of the
financial statement are prudent & reasonable, actual results could
differ from these estimates.
1.3 FIXED ASSETS
Land, Factory Building and Plant & Machinery are stated at revalued
amount less depreciation on cost of acquisition and other fixed assets
are stated at cost less accumulated depreciation and impairment
losses'', if any.
Depreciation on fixed assets have been provided on straight-line method
and on prorata basis at the rates and in the manner prescribed under
Schedule XIV of the Companies Act, 1956.
In Case of revalued assets, depreciation has been charge on the
original cost of that asset.
Inventories are valued at cost or net realizable value, whichever is
lower. The cost in respect of the various items of inventory is
computed as under.
- Raw material cost includes direct expenses and is determined on the
basis of weighted average method.
- Work in Progress includes cost of conversion and other costs
incurred in brining the inventories to their present condition.
- In case of finished goods cost includes raw material cost and other
overheads incurred to bring the goods to their present location and
1.6 REVENUE RECOGNITION
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, service etc. Interest Income is recognized on
time proportion basis taking into account the amount outstanding and
1.7 TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognised, subject to
the consideration of prudence in respect of deferred tax assets/
liability, on timing differences, being the differences between taxable
incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
1.8 RETIREMENT BENEFITS
Company has provided Retirement benefits in form ofProvident Fund &
Gratuity etc. to its all employees which is a defined contribution
plan. These contributions are made to the fund administrated and
managed by Government of India
These Financial statements have been prepared on basis consistent with
previous years and accounting policies not specifically referred hereto
are consistent with generally accepted accounting principles.
1.10. IMPAIRMENT OF ASSETS:
In accordance with the Accounting Standard (As-28) in Impairment of
Assets issued by The Institute of Chartered accountants of India,
during the year the company has reassessed its fixed assets and is of
the view that no further impairment / reversal is considered to be
necessary in view of its expected realizable ,
1.11. SEGMENTAL REPORTING:
The company has indentified Indian made foreign Liquor as the only
primary business segment and in accordance with the provision of
AS-17,.Hence Segmental reports are not furnished.
1.12. INTANGIBLE ASSETS
Intangible assets are recognized on the basis of recognition criteria
as set out in Accounting Standard (As) -26 ''Intangible Assets''
issued by the Institute of Chartered Accountants of India