1. SYSTEM OF ACCOUNTING:
Company follows accrual system of accounting.
2. FIXED ASSETS: Fixed Assets are stated at cost of acquisition less
accumulated depreciation. Depreciation on all assets is provided on
WDV method as per rates prescribed in schedule XIV of the Companies
3. TAXATION : Provisions for taxation comprises of current tax and
deferred tax charge or release and Fringe Benefit Tax. Deferred tax is
recognised subject to consideration of prudence on timing difference,
being difference between taxable and accounting income/expenditure that
originate in one period and are capable of reversal in one or more
subsequent period(s). Deferred tax assets arising out of carry forward
losses and unabsorbed depreciation are not recognised unless there is
virtual certainty that sufficient future taxable income will be
available against which such deferred tax assets will be realised.
4. INVESTMENT :Long term investments are stated at cost. Provision for
diminution in the value of investments is made only if such a decline
is other then temporary in the opinion of the management.
5. INVENTORIES: Inventories are valued at cost or net realisable value
whichever is lower (determined on weighted/ moving average basis)
6. FOREIGN CURRENCY TRANSACTION: Recorded on the basis of exchange
rate prevailing on the date of their occurrence. Monetary foreign
currency assets and liabilities outstanding at the close of the year
are revalorised at the exchange rates prevailing on the balance sheet
date Exchange differences arising on account of fluctuation in the rate
of exchange is recognised in the profit and loss account.
7. EMPLOYEE BENEFIT:
a) Short-term employee benefit are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
b) The Company makes contributions towards Provident Fund to a defined
contribution retirement benefit plan for qualifying employees. The
provident fund plan is operated by the Regional Provident fund
Commissioner. Under the scheme the company is required to contribute a
specified percentage of payroll cost to the retirement benefit schemes
to fund the benefits.