| 1.01 FIXED ASSETS AND DEPRECIATION:
(i) Fixed Assets are stated at cost inclusive of other identifiable
direct expenses and errection expenses up to the date of the assets put
to use and on commencement of production.
(ii) The company is charging depreciation under the straight line
method at the rates prescribed under schedule XIV of the Companies Act,
1956.
2.02 INVESTMENTS:
Investments are stated at cost and valued on FIFO basis. In the
management's opinion the decline in the value of shares on the
concerned stock exchange is of short-term nature and no provision for
the decline in the value of investment is considered necessary as on
the date of the balance sheet.
2.03 INVENTORIES :
The Company had followed the value of inventories as cost or market
value whichever is lower. However Raw Materials, Material-in-Process,
Stores and spare parts during the year are Nil.
2.04 SALES:
Sales, Labour Job charges, Warehousing charges, Sale of goods &
Services given net of trade discounts.
2.05 PURCHASE:
Purchases shown in the books of account are purchase cost and other
direct expenses incurred.
2.06 EXCISE DUTY:
The company has not liable to pay or charge excise duty as there is no
any exciseable goods manufacturing activities during the year.
2.07 CENVAT
Benefit of Cenvat credit in respect of Service Tax is directly reduce
from the respective expenses /Fixed Assets.
2.08 TAXATION
Current Income tax are measured at the amount expected to be paid to
Tax authorities in accordance with the Income Tax Act 1961 Tax paid
under MAT if any is to be charge to profit & loss a/c.
2.09 TREATMENT OF RETIREMENT BENEFITS:
Retirement benefits are recorded only on the Crystalisation of
liability.
2.10 CONTINGENT LIABILITY :
Contingent liabilities are determined on the basis of available
information and are disclosed byway of a note to the accounts.
2.11 FORIEGN CURRENCY TRANSCATION :
Foreign Currency transaction are recorded in the books of the Company
at the rates prevailing on the date of payment.
18. FORFEITURE OF EQUITY SHARES
Out of the forfeited equity shares of Rs.32.03 Lacs which were
forfeited in financial year 1994-95. Some allotees filed case against
forfeiture in respect of 10400 Equity Shares of Rs.10A each which are
pending before various courts. In this respect company has not made any
provisions.
19. MANAGERIAL REMUNERATION :
(a) Director's Remuneration: Rs. 1,80,000/- (previous year
Rs.1,80,000/-)
(b) The remuneration stated above is in accordance with the provisions
of and Schedule XIII to the Companies Act, 1956.
Since the remuneration stated above is the within the limit of
remuneration paid to the managerial personnel, calculation of
managerial remuneration under Section 198 of the Companies Act, 1956 is
not applicable.
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