| 1.1. Accounting Convention
The financial statements are prepared under the historical cost
convention in accordance with applicable accounting standards and
relevant presentational requirements of the Companies Act, 2013.
1.2. Fixed Assets
Fixed Assets are stated at cost and include installation charges,
freight, duties, taxes and expenditure incurred during construction
period wherever applicable. Assets under erection / commissioning are
shown as capital work in progress. All expenditure during the
construction period is allocated to Buildings and Plant & Machinery in
the same proportion of the balances in the respective heads as on the
date of commissioning of the project.
1.3. Depreciation
Depreciation on the fixed assets is provided on Written Down Value
Method at the rates and in the manner prescribed in Schedule - II to
the Companies Act, 2013 for all the assets during the year under
consideration.
1.4. Revenue Recognition
The Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis.
1.5. Employee Benefits
"Retirement benefits to the employees have not been provided as no
employee is eligible for the same. No Provision has been made in
respect of Gratuity Liability. Provident Fund and ESI as no employee is
eligible for the same, leave encashment shall be accounted on cash
basis.
1.6. Provision For Income Tax Provision for Current Tax :
Provision for Income Tax is made taking into consideration the
Provisions of Income Tax Act, 1961.
Provision for Deferred Taxation :
As per the AS 22, since there is no reasonable certainty that the
Company will get profits so as to absorb the carried forward losses and
depreciation, the deferred tax asset has not been recognized in the
financial statements.
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