| (i) Basis of Preparation of financial statements;
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises of
mandatory accounting standards as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956. Accounting policies have been consistently applied except
where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
(ii) Use Of Estimates:-
The presentation of financial statements in conformity with the
generally accepted accounting principal requires estimates and
assumptions to be made. That affects 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/materiaiized.
(iii) Fixed Assets:-
Fixed Assets are stated at cost less accumulated depreciation. Cost is
inclusive of freight, duties (net of tax credits as applicable) levies
and any directly attributable cost of bringing the assets to their
. working condition for their intended use.
(iv) Depreciation & Amortisation:-
Depredation is provided as per the written down value method at the
rate prescribed by Companies Act, 1956. Fixed assets are capitalized at
cost inclusive of expenses and interest wherever applicable.
(v) investments:-
Long term investments are stated at cost. Provision for diminution in
value of Long-term investment is made only if such decline is other
than temporary in the opinion of management. Investments other than
long term investments being current investments are valued at cost or
fair value whichever is lower
(vi) Inventories:-
The valuation of the inventory was done according to the accepted
accounting principles, i.e. at Cost or Market realizable Value,
whichever is lower.
(vii) Provision:-
A provision is recognized when an enterprise has a present obligation
as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provision are determined based
on management estimate require to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimates.
(viii) Treatment Of Contingent Liablities:-
Contingent liabilities are disclosed by way of notes. Provision is made
in the accounts for those liabilities which are likely to materialize
after the year end till the finalization of accounts and having effect
on the position stated in the balance sheet as at the year' end.
(ix) Taxation:-
Provision for taxation has been made in accordance with the rates of
Income Tax Act, 1961 prevailing for the relevant assessment year.
(x) Deferred Taxation:-
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax iaws that have been enacted or substantially
enacted at the balance sheet date. Deferred tax Assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in the future. Deferred Tax Assets are reviewed as at each
Balance Sheet date.
(xi) Sales
Safes are recognized, net of returns and trade discounts, on dispatch
of goods to Customers and are reflected in the accounts at gross
realizable value
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