(a) Basis for preparation of accounts
The Board of Directors at its Meeting held on 31st October 2000 decided
to close down its manufacturing operations with effect from lst
November 2000. However, these accounts have been prepared on a going
concern basis, since the Company has not altogether discontinued its
business activity. The Company is exploring diverse business avenues to
augment its revenue.
(b) Fixed Assets
(i) Fixed assets are stated at cost, less depreciatioa Costs include
inward freight and other attributable costs. In case of borrowed funds
and liabilities in foreign currencies for the acquisition of fixed
assets, the exchange differences are adjusted to the cost of such
(ii) Depreciation on fixed assets is provided on the Straight Line
Method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956. However, no depreciation is provided during the
year as the Company has closed down its manufacturing operations with
effect from lst November, 2000.
(iii) The Company has made Provision for Impairment of Assets as
required by Accounting Standard - AS 28 issued by Institute of
Chartered Accountants of India
(c) Specific debts and advances identified as irrecoverable or doubtful
are written off or provided for respectively.
(d) Retirement Benefits
In view of Note 1 (a) above, retirement benefits in respects of
gratuity and leave encashable at retirement/cessation are provided on
arithmetical basis. However, there are no employees at the year-end.
(e) Revenue Recognition
(i) Sale of goods is recognised on acceptance by the customer. Sales
include excise duty exclude sales tax recovered.