(a) Basis of Accounting: The financial statements are prepared under
historical cost convention and comply with the notified accounting
standards of Companies Accounting Standards Rules, 2006.
(b) Use of Estimates :The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the result of operations during the reporting period
end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
(c) Excise Duty : Excise Duties recovered are included in the sale of
product. Purchases are being shown at a figure net of excise duty.
(d) Revenue Recognition: Revenue is recognized on accrual basis.
(e) Depreciation : Depreciation is provided under the straight-line
method at the rates prescribed in Schedule XIV of the Companies Act,
(f) Taxation: Provision for Taxation comprises of Income Tax Liability
on the profits for the year chargeable to tax and Deferred Tax
resulting from timing differences between Book and Tax profits, The
Deferred Tax assets/ Liability is provided in accordance with the
accounting standard 22(AS-22), Accounting for Taxes on Income issued
by the Institute of Chartered Accountants of India.
Where Minim Alternate Tax (MAT) is applicable, it is provided in the
Profit and Loss Account irrespective of the Tax Credit benefits
envisaged in the Income Tax Act, 1961.