| a) Basis of Accounting:
The financial statements are prepared under historical costs convention
on accrual basis and are in compliance with the accounting standards
referred to in Section 211 (3C) of the Companies Act, 1956, except in
case of AS-15 Accounting for Retirement Benefits in the Financial
Statements of Employers.
b) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises of purchase price and any other attributable cost of bringing
the asset to working condition less excise duty taken as CENVAT credit,
VAT for it's intended use.
c) Depreciation:
Depreciation on fixed Assets is provided on Straight Line Method at the
rates specified from time to time in Schedule XIV of the Companies Act,
1956. Depreciation on additions/deductions during the year is
calculated on pro rata from/to date of additions deductions.
d) Investments:
Long term investments are carried at cost including accrued interest
thereon.
e) Inventories:
Inventories of finished goods are valued at cost or market price
whichever is lower, whereas, raw materials and semi-finished reusable
scrap and stores and spares are valued at cost, on FIFO basis.
f) Sales : Sales comprises of invoiced value of goods supplied net off
discounts, returns and taxes.
g) Staff Benefits : The provisions of Accounting Standard 15 on
Accounting for Retirement Benefits in the Financial Statement of
employers, issued by the council of the Institute of Chartered
Accountants of India is being complied with by the company under the
provident Fund Act. The retirement benefits i.e., Gratuity and leave
encashment payable are accounted on cash basis. The provision required
as on 31.03.2014 is not ascertained.
h) Prior Period and Extra-Ordinary Items : Income and expenditure
pertaining to prior period as well as extraordinary items, where
material, are disclosed separately.
j) Accounting for Taxes on Income
Current Tax and deferment tax liability for the year is recognised for
tax payable on taxable income and for timing differences, subject to
consideration of prudence as per Accounting Standard 22.
k) Earning Per Share
Basic and diluted earning per share is calculated in compliance with
the provisions of Accounting Standard 20. The denominator for
basic/diluted E.P.S. is 6288900 equity shares of Rs. 10/- each,
numerator is profit after tax.
l) Provisions and contingent liabilities/assets:
Contingent Liabilities are not recognised in accounts but are disclosed
in the notes to accounts. Contingent assets are neither recognised nor
disclosed in financial statements. Provisions involving substantial
degree of estimation in measurement are recognised when there is
present obligation and it is probable that there will be out flow of
resources.
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