| A) The Company prepares its accounts on the basis of historical cost
convention and income & expenditure are recognized on accrual basis in
accordance with Generally Accepted Accounting principles for the
preparation of its accounts and complies with accounting standards
issued by the Institute of Chartered Accountants of India & relevant
provisions of the Companies Act, 1956.
II) Fixed Assets :
a) Fixed Assets are stated at cost acquisition inclusive of duties (net
of Cenvat and Value added Tax credits), taxes, incidental expenses,
erection / commissioning expenses etc. Up to the date the assets is put
to use, less accumulated depreciation and impairment of losses, if any.
b) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external / internal factor.
III) Depreciation:
Depreciation of fixed assets is provided under the straight Line Method
at the rates prescribed under Schedule XIV of the Companies Act, 1956
with the applicable shift allowance.
In respect of assets added / assets sold during the year, pro-rata
depreciation has been provided at the rates prescribed under Schedule
XIV.
IV) Revenue Recognition:
a) Sales are recognised when goods are supplied and are recorded net of
trade discount rebates.
V) Employee Benefit:
a) The company has defined contribution plan for past employment
benefit namely provident fund which are recognised by the Income Tax
authorities this fund is administrated through trustees and the
company's contributions there to are charged to revenue account every
year.
b) Provision for gratuity has not been made in the accounts.
VI) Valuation of inventory :
a) Closing inventories comprising of Stores & Consumables are taken and
valued by the Directors, as informed, at cost or net realisable value
which ever is lower.
VII) Directors Remuneration - Rs. Nil (Previous year Nil)
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