| 1. Basis of Accounting
The financial statements have prepared under historical cost convention
on an accrual basis and comply with the Accounting Standards referred
to in Section 211(3C) of the Companies Act 1956.
2. Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known/materialized.
3. Fixed Assets and Depreciation
Fixed Assets are stated at historical cost less accumulated
depreciation thereon..Depreciation has been provided as per straight
line method and as per its useful life prescribed under Schedule II of
the Companies Act, 2013.
4. Inventories
Inventories are stated at cost or net realizable value, whichever is
lower.
5. Investments
All investments are for long term holding and are valued at cost.
6. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliable measured.
7. Taxes on Income
Provision for taxation comprises of Current Tax, and Deferred Tax.
Current Tax provision has been made on the basis of reliefs and
deductions available under the Income Tax Act, 1961. Deferred Tax is
recognized for all the timing differences, subject to consideration of
prudence, applying the tax rates that have been substantially enacted
at the Balance Sheet date.
8. Provisions
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of the
obligation can be made.
9. Loan/sundry debtor/sundry creditor
Balance of Loan/sundry debtor/sundry creditor is subject to
confirmation of parties.
10. Bank Balance
Bank balances are subject to reconciliation.
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