The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting.
B) REVENUE RECOGNITION
All expenses, claims and subsidies etc. to the extent considered
payable and receivable respectively unless specifically stated to be
otherwise are accounted for on accrual basis.
Sales are inclusive of excise duty.
Purchases are net of modvat receipts, if any.
E) FIXED ASSETS
Fixed assets have continued to be shown at cost less depreciation on
straight line method at the rates specified in schedule - XIV of the
Companies Act, 1956 as notified by department of company affairs vide
notification dated 16-12-93. Further, no depreciation has been charged
on assets which had not been used during the year.
F) INVENTORIES AND THEIR VALUATION
(As taken, valued and certified by the management)
The company has taken value of trading items at estimated cost as per
(ii) RAW MATERIAL
All raw materials stock except refrigerator and CCTV stocks have been
valued at last purchase price except PCB stocks which have been valued
at weighted average minus 25% as compared to reduction of 10% only in
the previous year. The stocks have become non-usable for production and
have also become non-moving items. The market value of the same could
not be ascertained.
(iii) WORK-IN-PROGRESS :
Work in progress, has all been merged with raw material as the same
could not be converted to finished products.
(iv) FINISHED STOCK (MANUFACTURED)
Finished goods have been valued at last purchase price of raw material
cost plus estimated production cost and freight and, reduced by 25% as
compared to reduction of 10% only in the previous year as the stocks
have become slow moving.
The amount involved in reduction of cost of raw material and finished
stock a result of reductions in % AGE as noted in point No. F-(ii) and
(iv) above calculated to Rs. 33,66,153.00 (previous year Rs.
(v) Trading items ( Refrigerators, CCTV & Educational Games)
Valued at estimated cost as per past practice.
G) FOREIGN CURRENCY TRANSACTION
First all foreign exchange transactions have been entered at the rate
prevalent on the dates of transaction. But all amount
receivable/payable as on 31/03/2000 have been taken at foreign exchange
rates applicable as on 31/03/2000.
H) EXPORT BENEFITS
No export benefits accrued during the year ended on 31/03/2000.
I) CONTINGENT LIABILITIES
Contingent liabilities are disclosed by way of a note to the balance
sheet and no provision for the same has been made in accounts.
Liabilities, if any arising out of contingent shall be accounted for on
Gratuity payments have been accounted for on payment basis. No
provision has been made for the liability accrued for those who have
completed five years as on 31-3-2000 on account of gratuity which could
not be ascertained for want of details (previous year Rs. 22.16 lacs).
No gratuity has been provided for nor calculated and ascertained for
those who have not completed five years on 31/03/2000.
K) BENEFIT ON IMPORTS AND FOREIGN OBLIGATIONS
Benefits against value based advance licences have been accounted for
on accrual basis.