| A. PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENT:
During the year ended 31st March 2012, the revised schedule VI notified
under the companies act, 1956 has been applicable to the company for
preparation and presentation of its financial statement. The
adaptation of revised schedule VI does not impact recognition and
measurement principles followed for presentation of financial
statements. However it has significant impact on presentation and
disclosure made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirement applicable to the current year.
B. ACOUNT1NG CONCEPTS:
The company follows mercantile system of accounting except Telephone
Expenditure. Accounting policies not referred to otherwise are
consistent with generally accepted accounting principles.
C. FIXED ASSETS:
a) Fixed Assets are stated at the original cost including other
expenses related to acquisition and installation and allocated
pre-operative expenses less depreciation on W.D.V. method.
b) Excise Duty paid on purchase of Fixed Assets is reduced from the
Purchase Price in order to avail Cenvat credit.
D DEPRECIATION:
Depreciation on Fixed Assets is charged on W.D.V. method, as per rates
prescribed in the schedule XIV of the companies Act, 1956 based on
single shift on pro-rata basis.
F. REVENUE RECOGNITION:
a) Sales are recognised at the time of delivery of goods.
b) Sales commission and brokerage is recognised on completion of the
terms of sales contract between the principal and the buyers.
c) Sales distribution charges are recognised at the time of delivery of
the goods as per the terms of contract.
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