| A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The Financial statement have been prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles and the provision of the Companies Act, 1956 as adopted
consistently by the company.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of Income and expenditure on accrual
basis.
B. FIXED ASSETS AND DEPRECIATION
a) Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation, For this cost includes all expenses related
to acquisition and installation of the concerned assets.
b) Depreciation on fixed assets has been provided on written down value
in accordance with the rates specified in schedule XIV to the companies
Act, 1956.
C. INVENTORIES
1. The closing stock has been valued as under
a) Finished Stock at market value
b) Raw material at cost
c) By-product at market value
D. INVESTMENTS
Investments are classified as long-term investments. Long-term
investments are carried at cost. No provision is made in respect of
diminution on value of investment being not considered permanent in
nature.
E. EMPLOYEE RETIREMENT BENEFITS
Contributions to Provident fund/Employee state insurance schemes made
to appropriate authorities are being accounted for on accrual basis.
Other retirement benefits are being accounted for on actual payment
basis. Hence no provision has been made for future gratuity liabilities
under provisions of payments of gratuity act, 1972 nor the same has
been quantified on the basis of actual valuation. Likewise leave
encashment liability has neither been quantified nor provided
F. REVENUE RECOGNITION
Revenue on account of sales are recognised when goods are supplied and
are recorded net of returns. Interest income is recognised on a time
proportion basis.
G. DEFEREED TAX
Current tax is the amount of tax on the accounting income for the year
determined in accordance with the normal provision of Income tax Act,
1961.
Provision has been made for income tax in view of profits after
considering depreciation calculated as per Income tax act, 1961.
Deferred tax assets resulting from timing differences between book and
taxable profit is accounted for using the current rate of tax to the
extent that the timing differences are expected to crystalize.
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