1. GENERAL
The Financial Statements have generally been prepared on the historical cost convention.
Accounting policies not specifically referred to otherwise are in consonance with generally
accepted accounting principals.
2. BASIS OF ACCOUNTING
The company follows the mercantile system of accounting generally except otherwise stated herein
below, if so.
3. FIXED ASSETS
During the year after due consultation with Auditors and as per audit committee fixed assets were
identified were obsolete in nature, Hence carrying amount has been debited to Profit and loss A/c as
exception item.
4. INVESTMENTS
During the year after due consultation with Auditors and as per audit committee investments were
identified were obsolete in nature, Hence carrying amount has been debited to Profit and loss A/c as
exception item.
5. INVENTORIES
Inventory is valued at cost or net realizable value whichever is less.
6. REVENUE AND EXPENDITURE RECOGNITION
Revenue is recognized and expenditure is accounted for on their accrual except insurance claim,
claims in respect of material purchased and sold which are accounted for on cash basis.
7. MISCELLANEOUS EXPENDITURE
During the year after due consultation with Auditors and as per audit committee carrying amount of
Pre-operative Exps and Public Issue Exps has been debited to Profit and loss A/c as exception item.
8. DEFER TAX
The Deferred tax is recognized for all temporary differences subject to the consideration of
prudence and at currently available rates. Deferred Tax assets are recognized only if there is virtual
certainty that they will be realized.
9. FOREIGN CURRENY TRANSACTION
There is no such transaction during the year.
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