i) Basis of Preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under historical cost
convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211(3C) [Companies (Accounting
Standards) Rules, 2066, as amended] and other relevant provisions of
the Companies Act. 1956. All the assets and liabilities have been
classified as current or non current as per the company''s normal
operating cycle and other criteria set out in schedule VI of the
Companies Act, 1956. Based on the nature of products and the time
between the acquisition of assets for processing and their realisation
in cash and cash equivalents, the company has ascertained its operating
cycle to be less than 12 months.
ii) Fixed Assets :
Fixed Assets are stated at original cost which includes expenditure
incurred in acquisition and installation and other related expenses.
iii) Depreciation :
Depreciation on Assets has been provided on written down value method
as prescribed in the schedule XIV of the companies Act, 1956.
iv) Investments _
Long-term investments and current maturities of long-term investments
are stated at cost less provision for other than temporary diminution
in value. Current investments, except for current maturities of long
term investments, are stated at the lower of cost and fair value,
determined on a portfolio basis.
Stores & spares parts has been valued at cost on FIFO basis.
Inventories are taken, valued & certified by the management.
vi) Employees Benefits :
Employees benefit of short term nature are recognised as expense as and
when it accrues.
Employees benefit of long term nature are recognised as expense based
on actuarial valuation.
Company''s contribution in respect of Employees'' Provident Fund is made
to Government Provident Fund and is charged to Profit & Loss Account.
Accrued leave for the year is paid to the employees during the year
Other same will be provided as and when became due.
vii) Revenue Recognition .
viii) Expenses :
Material known liabilities are provided on the basis of available
information / estimates.
ix) Claims : ,
Claims have been accounted for on receipt/payment basis.
<) Foreign Exchange Transaction : ''
Transaction in foreign currency relating to (a) imports are recorded at
the exchange rate prevailing at the time of such transaction, (b)
Exports are recorded at the realised value as certified by the banks,
however exports for which exchange sale forward contracts have been
entered into with the banks are recorded at the respective forward
contracts have been entered into with the banks are recorded at the
respective forward contract value. ,
Realised gains/losses on foreign exchange transaction are recognised in
the Statement of Profit and Loss at the time of actual realisation of
Unrealised exports are recorded at the exchange rate prevailing at the
close of the year. However, unrealised exports for which exchange sale
forward contract have been entered into with the banks are recorded at
the respective forward contract value.
xi) Income Tax
Provision is made for income tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with the
Income Tax Act, 1961.
Deferred Income Tax is provided, using the liability method, on all
temporary differences at the Balance Sheet date between the tax basis
of assets and liabilities and their carrying amounts for financial
Deferred tax assets are recognised only to the extent that there is a
reasonable certainty that sufficient future taxable profits will be
available against which such deferred tax assets can be realised.
Deferred Tax Assets and Liabilities are measured using the tax rates
and the tax laws that have been enacted or subsequently enacted at the
Balance Sheet date.
xii) Contingent Liabilities :
Contingent liabilities are disclosed by way of notes on accounts.