Accounting Policies of Tejassvi Aaharam Ltd. Company

Mar 31, 2024

2.Material accounting policies

a) Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Indian
Accounting Standards (Ind AS) notified under the section 133 of companies act, 2013 read with
Rule 3 Companies (Indian Accounting Standards) Rules, 2015 (as amended) Companies (Indian
Accounting Standards) (Amendment Rules), 2016 and in terms of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements
have been prepared on accrual basis under the historical cost convention. The accounting policies
adopted in the preparation of the financial statements are consistent with those followed in the
previous year.

b) U se of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the
Management to make estimates and assumptions considered in the reported amount of assets and
liabilities (including contingent liabilities) and the reported Income and Expenses during the
period. The Management believes that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognised in the periods in which
the results are known / materialise.

c) Cash and cash equivalents

Cash comprises cash on hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.

d) Events occurring after the reporting period.

There are no contingencies and events occurring after the balance sheet date that affects the
financial position of the company.

e) Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post- tax
effect of extraordinary items, if any) by the weighted average number of equity shares outstanding
during the year. ⁷²

f) Financial Instruments.

A financial liability is any liability that a contractual obligation to deliver cash or another financial
asset to another entity; or to exchange financial assets or financial liabilities with another entity
under conditions that are potentially unfavourable to the entity.

Financial Liabilities of the Company:

The financial liability of the Company includes Borrowings from Government of India and Banks,
Accrued expenses and other payables.

Initial recognition and measurement

All financial liabilities at initial recognition are classified as financial liabilities at amortized cost
or financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities
classified at amortized cost are recognized initially at fair value net of directly attributable
transaction costs. Any difference between the proceeds (net of transaction costs) and the fair
value at initial recognition is recognised in the Statement of Profit and Loss or in the CWIP, if
another standard permits inclusion of such cost in thecarrying amount of an asset over the
period of the borrowings using the Effective interest rate method.

Subsequent measurement

The subsequent measurement of financial liabilities depends upon the classification as described
below:-

Financial Liabilities classified as Amortised Cost

Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured
at amortised cost at the end of subsequent accounting periods. Amortised cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. Interestexpense that is not capitalized as part of costs of assets is included as
Finance costs in the Statement of Profit and Loss.

Financial Liabilities classified as Fair value through profit and loss (FVTPL)

Financial liabilities classified as FVTPL includes financial liabilities held for trading and financial
liabilities designated upon initial recognition as FVTPL. Financial liabilities are classified as held
for trading if they are incurred for the purpose of repurchasing in the near term. Financial
liabilities designated upon initial recognition at FVTPL only if the criteria in Ind AS 109 is
satisfied.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged /
cancelled / expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de recognition of the original
liability and the recognition of a new liability. ⁷³ difference in the respective carrying amounts is

recognized in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a netbasis, to realise the assets and settle the liabilities simultaneously.

g) Employee Benefits.

The number of employees on the roll of the company are below the statutory limit for the purpose
of registration under provident fund Act and Gratuity Act. Hence, the company has not provided
for liability of Provident fund and Gratuity in its books. The company does not have the policy of
compensating absences. Hence no provision is made in the books of accounts.

Previous year''s figures have been regrouped / reclassified wherever found necessary to conform to
this year''s classification

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Mar 31, 2014

A. Accounting Convention:

i) The Financial Statements are prepared In accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

Use of Estimates

ii) Estimates and assumptions used in the preparation of the financial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to, the consumer and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis, No business operations during the year.

C. Fixed Assets:

Land and building only is the assets of the company.

D. Depreciation:

None of the Fixed Assets have been revalued during the year. Depreciation Is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956. During the year the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence depreciation has been claimed.

E. Inventories : NIL

F. Investments : NIL

G. EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There is only One employee. Hence not considered.

b) POST EMPLOYMENT BENEFITS:

i) Defined Contribution Plans:

There is only One employee. Hence not considered.

ii) Defined Benefit Plans:

There is only One employee. Hence not considered.

H. Sales : NIL No Income from operations during the year.

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Mar 31, 2013

A. Accounting Convention:

i) The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis. Use of Estimates

ii) Estimates and assumptions used in the preparation of the financial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis. No business operations during the year.

C. Fixed Assets:

During the Year the Company has dismantled the whole of Plant and Machinery and disposed off the same. Land and building only is the assets of the company.

D. Depreciation:

None of the Fixed Assets have been revalued during the year. Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company. During the year the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence the depreciation has been claimed.

E Inventories: NIL

F Investments: NIL

G EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There is only One employee. Hence not considered.

b) POST EMPLOYMENT BENEFITS:

i) Defined Contribution Plans:

There is only One employee. Hence not considered.

ii) Defined Benefit Plans:

There is only One employee. Hence not considered.

H Sales: NIL No Income from operation during the year.

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Mar 31, 2012

A. Accounting Convention:

i) The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

Use of Estimates

ii) Estimates and assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation.

D. Depreciation:

None of the Fixed Assets have been revalued during the year. Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company. During the year the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence the depreciation has been claimed.

E. Inventories: Stores and Spares: Valued at cost.

F. Investments: NIL

G. EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There are only Two employees. Hence not considered.

b) POST EMPLOYMENT BENEFITS: i) Defined Contribution Plans:

There are only Two employees. Hence not considered.

ii) Defined Benefit Plans:

There are only Two employees. Hence not considered.

H. Sales: NIL No Income from operation during the year.

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Mar 31, 2011

A. Accounting Convention:

i) The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis. Use of Estimates

ii) Estimates and assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets: *

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation.

D. Depreciation:

None of the Fixed Assets have been revalued during the year. Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company. During the year the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence the depreciation has been claimed.

E. Inventories:

Stores and Spares: Valued at cost.

F. Investments: NIL

G. EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There are only Two employees. Hence not considered.

b) POST EMPLOYMENT BENEFITS:

i) Defined Contribution Plans:

There are only Two employees. Hence not considered.

ii) Defined Benefit Plans:

There are only Two employees. Hence not considered.

H. Sales: NIL No Income from operation during the year.

I. Foreign Exchange

Transactions:

During the year the Company has not dealt with foreign exchange transactions.

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Mar 31, 2010

A. Accounting Convention:

i) The Financial Statements are prepared in accordance with the requirements of the Companies Act,1956 under the historical cost convention on the accrual basis.

ii) Use of Estimates

Estimates and assumptions used in the preparation of the financial statements are based upon Managements evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Mill did not run and no sale or conversion charges received during the year. Other income and Expenditure are accounted for on mercantile basis.

C. Fixed Assets:

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation.

D. Depreciation:

None of the Fixed Assets have been revalued during the year. Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule- XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

During the year the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence the depreciation has been claimed.

E. Inventories:

Stores and Spares: Valued at cost.

F. Investments: NIL

G. EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There is only one employee. Hence not considered.

b) POST EMPLOYMENT BENEFITS:

i) Defined Contribution Plans:

There is only one employee. Hence not considered. ii) Defined Benefit Plans:

There is only one employee. Hence not considered.

H. Sales: NIL No Income from operation during the year.

I. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

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Mar 31, 2009

A. Accounting Convention:

i) The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

ii) Use of Estimates

Estimates and assumptions used in the preparation of the financial statements are based upon Managements evaluation of the relevant facts and circumstances as of the date of the Financial Statement.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation.

None of the Fixed Assets have been revalued during the year. Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule- XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company. During the yea,the mill did not run and no conversion charges received. However, there will be usual wear and tear. Hence the depreciation has been claimed.

D. Inventories:

Stores and Spares: Valued at cost.

E. Investments: NIL

F. EMPLOYEE BENEFITS:

a) SHORT-TERM EMPLOYEE BENEFITS:

There are only Three employees. Hence not considered.

b) POST EMPLOYMENT BENEFITS:

i) Defined Contribution Plans:

There are only Three employees. Hence not considered.

ii) Defined Benefit Plans:

There are only Three employees. Hence not considered.

G. Sales: NIL No Income from operation during the year. H. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

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Mar 31, 2007

A. Accounting Convention:

The Financial Statements are prepared in accordance with the requirements of the Companies Act,1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation. None of the Fixed Assets have been revalued during the year.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

D. Inventories:

i. Raw material and work-in-process: Valued at cost on FIFO basis.

ii. Finished goods and other Stock-in-trade: Valued at cost or net realisable value, whichever is lower,

iii. Stores and Spares: Valued at cost,

iv. Packing Material: Valued at cost

v Cotton waste: Net realisable value.

E. Investments: NIL

F. Retirement benefits

i. Provident Fund

Eligible Employees receive benefits from a provident fund which is a defined contribution plan. The Company is regular in payment of Provident Fund dues.

ii. Gratuity

The estimated liability of gratuity payable as per the management works out to Rs. 2,08,2237- in accordance with the provisions of payment of Gratuity Act, 1972 which has been provided for.

iii. Leave encashment

As determined on the basis of Leave Rules of the Company and are charged to the Profit and Loss Account on accrual basis.

G. Sales:

Sales represent the amount receivable for goods sold.

H. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

I. Preliminary Expenses

1/10 of the preliminary expenses have been written off during the year.

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Mar 31, 2005

A. Accounting Convention:

The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed Assets are stated at historical cost of acquisition (less CENVAT Credits) including installation and commissioning charges less accumulated depreciation. None of the Fixed Assets have been revalued during the year.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

D. Inventories:

i. Raw material and work-in-process: Valued at cost on FIFO basis.

ii. Finished goods and other Stock-in-trade: Valued at cost or net realisable value, whichever is lower. Manufactured finished goods held in the factory includes Excise duty.

iii. Stores and Spares: Valued at cost.

iv.. Packing Material: Valued at cost

v. Cotton waste: Net realisable value.

E. Investments: NIL

F. Retirement benefits

i. Provident Fund : Eligible Employees receive benefits from a provident fund which is a defined contribution plan. The Company is regular in payment of Provident Fund dues.

ii. Gratuity : The estimated liability of gratuity payable as per the management works out to Rs. 92, 523/- in accordance with the provisions of payment of Gratuity Act, 1972 which has been provided for.

iii. Leave encashment: As determined on the basis of Leave Rules of the Company and are charged to the Profit and Loss Account on accrual basis.

G. Sales:

Sales represent the amount receivable for goods sold including excise duty thereon.

H. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

I. Preliminary Expenses

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Mar 31, 2003

1. SIGNIFICANT ACCOUNTING POLICES:

A. Accounting Convention:

The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and delivery as per terms of sale. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight line method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

D. Inventories:

i. Raw material and work-in-process: Valued at cost on FIFO basis.

ii. Finished goods and other Stock-in-trade: Valued at cost or net realisable value, which ever is lower. Manufactured finished goods held in the factory includes Excise duty.

iii. Stores and Spares: Valued at cost.

iv. Packing Material: NIL

v. Cotton waste: Net realisable value.

E. Investments: NIL

F. Retirement benefit:

i The Company is regular in payment of Provident Fund dues.

ii The estimated liability of gratuity payable as per the management worksout to Rs.65,837/- which have been provided for.

iii. Leave encashment: As determined on the basis of Leave Rules of the Company and are charged to the account on accrual basis.

G. Sales:

Sales represent the amount receivable for goods sold including excise duty thereon.

H. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

I. Preliminary Expenses:

1. 10 of the preliminary expenses have been written off during the year.

2. Estimated amount of contracts remaining to be executed on Capital Accounts not provided for

2002-03 2001-02

Nil Nil

3. Secured Loans:

a. Term loans from Financial institutions and Bank: They are secured by mortgage of fixed assets present and future of the Company on paripassu basis and floating charge on current assets subject to first charge to bank providing Working Capital. They are also guaranteed by the Chairman-Cum-Managing Director.

b. Working Capital Loan has been secured against hypothecation of stock of raw material, finished goods, work-in-process, stores and spares, book debts and collaterally secured by second charge on the entire block of assets and by personal guarantee of Chairman-Cum-Managing Director and a shareholder of the Company.

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Mar 31, 2002

A. Accounting Convention:

The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition:

Revenue from sale of goods is recognised upon passing of title to the consumer, and on delivery as per terms of sale.

Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets:

Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight line method at the rates prescribed under the Schedule - XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as Continous process plant by the Company.

D. Inventories:

i. Raw material and work-in-process: Valued at cost on FIFO basis.

ii. Finished goods and other Stock-in-trade: Valued at cost or net realisable value, which ever is lower. Manufactured finished goods held in the factory includes Excise duty.

iii. Stores and Spares: Valued at cost on FIFO basis.

iv. Packing Material: NIL

v. Cotton waste: Net realisable value.

E. Investments: NIL

F. Retirement Benefit:

i. The Company is regular in payment of Provident Fund dues.

ii. The Company has decided to meet any liability on account of gratuity on cash basis as and when it arises. The Estimated liability of gratuity payable as per the management worksout to Rs.85,349/- which have not been provided for.

iii. Leave encashment: As determined on the basis of Leave Rules of the Company and are charged to the account on accrual basis.

G. Sales:

Sales represent the amount receivable for goods sold including excise duty there on.

H. Foreign Exchange Transactions:

During the year the Company has not dealt with foreign exchange transactions.

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Mar 31, 2001

A. Accounting Convention :

The Financial Statements are prepared in accordance with the requirements of the Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition :

Revenue from sale of goods is recognised upon passing of title to the consumer, i.e. delivery as per terms of sale.

Consignment sales are accounted on the basis of sale Patti. Other income and expenses are accounted for on mercantile basis.

C. Fixed Assets :

Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight line method at the rates prescribed under Schedule-XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

D. Inventories :

i. Raw material and work-in-process : Valued at cost on FIFO basis.

ii. Finished goods and other Stock-in-trade are valued at cost or net realisable value, which ever is lower. From this year manufactured finished goods held in the factory also includes Excise Duty and by proper accounting treatment this has no implication on the loss for this year.

iii. Stores and Spares : Valued at cost.

iv. Packing Material : Valued at cost.

v. Cotton waste : Valued at net realisable value.

E. Investments :

Investments are valued at cost.

F. Retirement Benefit :

i. The Company is regular in payment of Provident Fund dues.

ii. The Company has decided to meet any liability on account of Gratuity on cash basis as and when it arises.

iii. Leave encashment :

As determined on the basis of Leave Rules of the Company and are charged to the account only at the time of actual payment.

G. Sales :

Sales represent the amount receivable for goods sold including excise duty there on.

H. Foreign Exchange Transactions :

During the year the Company has not dealt with any foreign exchange transactions.

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Mar 31, 2000

A. Accounting Convention :

The Financial Statements are prepared in accordance with the requirements of Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Revenue Recognition :

Revenue from sale of goods is recognised upon passing of title to the consumer, ie. delivery as per terms of sale.

Consignment sales are accounted on the basis of sale profit.

Other Income and expenses are accounted for on mercantile basis.

C. Fixed Assets :

Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule -XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

D. Inventories :

i. Raw materials and work-in-process : valued at cost on FIFO basis.

ii. Finished goods and other stock-in-trade : valued at cost or net realisable value, whichever is lower. From this year, Excise duty on Finished goods has been accounted on the clearance from the Factory premises. However, change in the method of valuation of Closing Stock has no impact on the loss for the year.

iii. Stores and spares : Valued at cost

iv. Packing material : Valued at cost

v. Cotton Waste : Valued at cost

E. Investments :

Investments are valued at cost.

F. Retirement Benefits :

(i) The Company has started payment of Provident Fund arising with effect from 5th July, 1999.

(ii) The Provisions of Payment of Gratuity Act are not yet applicable.

(iii) Leave Encashment : As determined on the basis of Leave Rules of the Company and are charged to account only at the time of actual payment.

G. Sales :

Sales represent the amount receivable for goods sold including excise duty thereon.

H. Foreign Exchange Transactions :

During the year the company has not dealt with foreign exchange transactions.

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Mar 31, 1999

A. Accounting Convention :

The Financial Statements are prepared in accordance with the requirements of Companies Act, 1956 under the historical cost convention on the accrual basis.

B. Fixed Assets :

Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule-XIV of the Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

C. Inventories :

i. Raw materials and work-in-process : valued at cost.

ii. Finished goods and other stock-in-trade : valued at lower of cost or net realisable value, whichever is lower

The Excise Duty payable on finished goods has been accounted on the payment basis for goods cleared and provision made for uncleared goods at the factory premises.

iii. Stores and spares : Valued at cost

iv. Packing material : Valued at cost

v. Waste : Net realisable value

D. Investments :

Investments are valued at cost.

E. Retirement Benefits :

(i) The Company has made Provision for the Employees' Provident Fund payable.

(ii) The Provisions of Payment of Gratuity Act are not yet applicable.

(iii) Leave Encashment : As determined on the basis of Leave Rules of the Company and are charged to account only at the time of actual payment.

F. Sales :

Sales represent the amount receivable for goods sold including excise duty thereon.

G. Foreign Exchange Transactions :

During the year the company has not dealt with foreign exchange transactions.

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Mar 31, 1998

1. Accounting Convention :

The Financial Statements are prepared in accordance with the requirements of Companies Act, 1966 under the historical cost convention on an accrual basis.

2. Fixed Assets :

Fixed assets are stated at historical cost of acquisition (less MODAVAT Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule-XIV of The Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

3. Inventories :

i. Raw materials and work-in-progress : valued at cost.

ii. Finished Goods and other stock- : valued at lower of cost or in-trade net realisable value.

Excise duty payable on Finished Goods has been accounted on the payment basis for goods cleared provision made for uncleared goods at the factory premises.

iii. Stores and spares : valued at cost

iv. Packing Material : valued at cost

v. Waste : Net realisable value.

4. Investments : Investments are valued at cost.

5. Retirement Benefits :

The Company has made no provision for employees Provident Fund and Gratuity. The Provident Fund authorities vide their letter dated 12.2.98, have intimated that the provisions of the Provident Fund Act are applicable to the company with effect from 22.9.97. The company has disputed the same and filed a writ petition before the Madras High Court.

6. Sales :

Sales represent the amount receivable for goods sold including Excise Duty thereon.

7. Foreign Exchange Transactions :-

During the year the company has not dealt with foreign exchange transactions.

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Mar 31, 1997

A. Accounting Convention The Financial Statements are prepared in accordance with the requirements of Companies Act, 1956 under the historical cost convention on an accrual basis.

b. Fixed Assets Fixed assets are stated at historical cost of acquisition (less Modvat Credits) including installation and commissioning charges less accumulated depreciation.

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule-XIV of The Companies Act, 1956 and while doing so the Plant and Machinery has been considered as continuous process plant by the Company.

c. Inventories i. Raw materials and work-in-process - valued at cost. ii.Finished goods and other stock-in-trade - valued at lower of cost or net realisable value. iii. Stores and spares - valued at cost. iv. Packing Material - valued at cost. v. Waste - Net realisable value.

The Excise Duty payable on finished goods is accounted for at the time of clearance of goods from the factory premises.

d. Investments : Investments are valued at cost.

e. Retirement Benefits Provisions of Employees Provident Fund Act and Gratuity are not applicable to the company and hence no provisions are made.

f. Sales : Sales represent the amount receivable for goods sold including excise duty thereon.

g. Foreign Exchange Transactions During the year the company has not dealt with foreign exchange transactions.

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Mar 31, 1996

No Information Available.