| a. The Accounts of the Company have been prepared under the historical
cost convention in accordance with generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable accounting standards issued by Institute of Chartered
Accountants of India.
b. Fixed Assets are accounted at original cost less accumulated
depreciation.
c. Since there was no commercial production, no Depreciation is
provided on Building, Plant and Machinery, Electric Installation. On
remaining assets, depreciation has been provided on Written Down Value
Method as per Income Tax Act, 1961.
d. Investments have been valued at cost and are physically verified by
the management.
e. The Current assets, loans and advances are stated at the value,
which will be raised in the ordinary course of the Company's business.
f. Inventories have been valued at cost or market value whichever is
lower.
g. Revenue/Income and cost/expenditure are generally accounted for on
accrual basis as they are earned or incurred.
h. Previous year figures are regrouped and rearranged wherever
necessary.
B. CONTINGENT LIABILITIED
Claims against the Company not acknowledge as debts : Income Tax demand
under Appeal Rs. 1,21,70,815/- for the Block Period from 01-04-1988 to
30-06-1998.
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