Accounting Policies of Banaras Beads Ltd. Company

Mar 31, 2018

A. STATEMENT OF COMPLIANCE:

The company’s financial statement have been prepared in accordance with the provision of the Companies Act., 2013 and the Indian Accounting Standard(“Ind AS”) notified under the Companies (Indian Accounting Standard) Rules, 2015 issued by Ministry of Corporate Affairs in respect of section 133 read with sub-section (1) 210A of the Companies Act,1956 (1 of 1956). In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations require a different treatment. The financials for the year ended March 31,2018 of the company are the first financial statement in compliance with Ind AS. The date of transition to Ind AS is April 1, 2016. The financial statement up to year ended March 31,2017, were prepared in accordance with the accounting standard notified under Companies (Accounting Standard) Rules, 2006 (“I-GAAP”) and other relevant provisions of the Act. The figures for the year ended March 31,2017 have now been restated as per Ind AS to provide comparability. These financial statements have been approved by the Board of Directors at their meeting held on May 25, 2017.

B. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

C. PRESENTATION OF FINANCIAL STATEMENT:

The Balance Sheet and the Statement of Profit and loss prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013(“the Act”). The statement of cash flow has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flow”. The disclosure requirement with respect to items in the Balance Sheet and the Statement of the profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. Amounts in the financial statements are presented in absolute Indian Rupee as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupees to two decimals places.

D. REVENUE RECOGNITION:

The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

- Sales include export sales whether made directly or through third parties. Sale does not include Goods and Service Tax or any other indirect tax such as Excise Duty, VAT etc. Due to applicability of Goods and Service Tax, Export Sales is recognized when goods are dispatched from factory with export invoice and thus includes Goods under shipment.

- Interest income is accrued on a time basis and the effective interest rate.

- Dividend income is accounted in the period in which the same is received.

- Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.

- All the expenditures are recognized on accrual basis except written else otherwise in any notes.

- Duty Credit Script under Merchandise Export incentive Scheme/Export promotion Capital Goods/ Advance Authorisation Incentive Script Schemes are normally consumed in payments of custom duty against imports made. Entries for such consumption is made in respective purchase account on the amount of custom duty adjusted. Entries for scripts transferred are accounted for on realised value. Duty Credit Script under Merchandise Export incentive Scheme/Export promotion Capital Goods/ Advance Authorization Incentive Script Schemes receivable at the end of accounting year is accounted on estimated realizable value.

E. PROPERTY, PLANT AND EQUIPMENT(PPE):

PPE is recognized when it is possible that the future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/duties credits availed, if any, less accumulated depreciation, if any.

For Transition to Ins AS, the company has elected to adopt as deemed cost, the carrying value of PPE measured as per I-GAAP less accumulated depreciation on the transition date of April 1, 2016.

PPE not ready for intended use on the date of the Balance Sheet are disclosed as “Capital Work-in-Progress”.

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 on single shift basis. Depreciation on additions to/deductions from, owned asset is calculated on pro rata to the period of the use.

F. INVESTMENT PROPERTY:

The company does not intend to create Property to earn rental income. The company is having rental income by renting out very small part of unused factory building on short term basis which is not a material amount, thus no property is classified separately as Investment Property.

G. INTANGIBLE ASSET:

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible asset are stated at original cost net of tax/duty credits availed, if any, less accumulated amortization. Intangible Assets are amortized on Written Down Value basis over the useful life of asset as prescribed in Schedule II of the Companies ACT’2013.

H. INVESTMENTS:

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited to the Statement of Profit & Loss. If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost is credited to the Statement of Profit & Loss.

I. EMPLOYEE BENEFIT:

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia scheme, performance-linked reward falling due to wholly within twelve month of rendering services are recognized in the period in which the employee renders the related services.

Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund, as indicated by the L.I.C. is provided for by the Company as gratuity liability.

J. INVENTORIES:

Inventories are valued on the following basis-

Raw Materials : At average cost

Finished / Semi-finished goods : At Average cost or market value whichever is lower

Stores, spare parts : At Average cost and in appropriate cases charged to manufacturing

expenses in the year of purchase.

K. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are accounted for in accordance with Ind AS-21. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

L. ACCOUNTING AND REPORTING OF INFORMATION FOR OPERATING SEGMENTS:

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the company to make decisions for performance assessments and resource allocation. Segment accounting policies are in line with the accounting policies of the company. The reporting of segment information is the same as provided to the management for the purpose of the performance assessments and resource allocation to the segments.

M. INCOME TAXES:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act’1961.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the companies financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

N. BORROWING COST:

Borrowing cost that is attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such assets till such time the assets is ready for its intended use or sale. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

- Provisions are recognized when the company has a present obligation as a result of past event and a reliable estimate of amount of obligation can be made.

- Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts in case of a present obligation arising from past events when it is not probable that an outflow of resources will be required to settle the obligation and no reliable estimate is possible.

- Contingent assets are disclosed when an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

P. STATEMENT OF CASH FLOWS:

Statement of cash Flow is prepared as prescribed in Schedule III of Companies Act’2013 segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method by adjusting the net profit for prescribed items.

Q. FIRST TIME ADOPTION OF IND AS:

The company has prepared the opening Balance Sheet as at 01.04.2016 (transition date) as per Ind AS by-

- recognizing all assets and liabilities whose recognition is required by Ind AS,

- derecognizing items of assets or liabilities which are not permitted to be recognized as per Ind AS

- reclassifying the items from I-GAAP to Ind AS where ever required and

- applying Ind AS to measure the recognized assets and liabilities.

Following exemptions are availed by the company under Ind AS 101 while applying the Ind AS for the first time-

- the company has adopted the carrying value determined in accordance with I-GAAP for all of its PPE as deemed cost of such assets on 01.04.2016

- the estimates as at 01.04.2016 and 31^st March’2017 are consistent with those made for the same dates in accordance with I-GAAP.

R. The accounting policies have been consistently followed and there has been no significant change in such policies during the year except for changes made for statutory compliance.

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Mar 31, 2016

1. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies referred to otherwise are consistent with generally accepted accounting policies. The company fellows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2 FIXED ASSETS-

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION-

Depreciation on fixed asset is provided to the extent of depreciable amount on written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, on single shift basis.

4. INVESTMENTS:

Long Term Investments are shown at fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited Statement Profit &Loss If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost credited Statement of Profit & Loss

5. INVENTORIES:

Basis of valuation

Raw Materials : At average cost

Finished / Semi finished goods : At cost or market value whichever is lower

Stores, spare parts : At cost and in appropriate cases charged to manufacturing expenses in the year of purchase .

6. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are accounted for in accordance with by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transaction Intimated in a foreign currency and outstanding at the Balance Sheet date are transaction change rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in the year in which items denominated in foreign currency are carried at the exchange in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis

(ii) Liability for gratuity in respect of Jokes is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit &Loss Account. The short fall in as the Fund, indicated by the L.I.C. is provided: by the Company as gratuity liability.

(iii) The leave salary payable in respect of encashable leave is provided for according to the service rule of the leave, which is not encashable during the continuance of service is provide for.

8. ACCOUNTING FOR DUTY CREDIT SCRIPT UNDER MERCHANDISE EXPORT INCENTIVE SCHEME/EXPORT PROMOTION CAPITAL GOODS/ ADVANCE AUTHORISATION INCENTIVE SCRIPT SCHEMES:

Duty Credit Script under Merchandise Export incentive Scheme/Export promotion/ Advance Authorization a incentive Script Schemes are normally consumed in payments of custom duty against imports made. Entries for such consumption is maiden respect purchase account on the amount of custom duty adjusted. Entries for transferred are accounted for on realized Credit Script under Merchandise Export incentive Scheme/Export promotion Capital Goods/ Advance Authorization Incentive Scheme receivable at the end of accounting year is accounted on estimate realizable value .

9. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

10. SALES:

Sales include export sales whether made directly or third parties .

11. The accounting policies have been consistently followed and there has been no significant change in such policies for changes made for statutory compliance

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Mar 31, 2015

1. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS:-

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION:-

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 on single shift basis.

4. INVESTMENTS:

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited to the Statement of Profit & Loss. If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost is credited to the Statement of Profit & Loss.

5. INVENTORIES:

Basis of valuation

Raw Materials : At average cost

Finished / Semi-finished goods : At cost or market value whichever is lower

Stores, spare parts : At cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are accounted for in accordance with AS-11 issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund, as indicated by the L.I.C. is provided for by the Company as gratuity liability.

(iii) The leave salary payable in respect of encashable leave is provided for according to the service rule of the Company. Unavailed leave, which is not encashable during the continuance of service is not provided for.

8. ACCOUNTING FOR DUTY CREDIT SCRIPT UNDER FOCUS PRODUCT/VISHESH KRISHI UDYOG YOJNA AND STATUS HOLDER INCENTIVE SCRIPT :

Duty Credit Script under Focus Product/VKUY and Status Holder Incentive Script Schemes are normally consumed in payments of custom duty against imports made. Entries for such consumption is made in respective purchase account on the amount of custom duty adjusted. Entries for scripts transferred are accounted for on realised value. Duty Credit Script under Focus Product and Status Holder Incentive Script Scheme receivable at the end of accounting year is accounted on estimated realizable value.

9. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

10. SALES:

Sales include export sales whether made directly or through third parties.

11. The accounting policies have been consistently followed and there has been no significant change in such policies during the year except for changes made for statutory compliance.

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Mar 31, 2013

1. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS:- Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION:- Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on single shift basis.

4. INVESTMENTS:

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited to the Profit & Loss Account. If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost is credited to the Profit & Loss Account.

5. INVENTORIES:

Basis of valuation

Raw Materials : At average cost

Finished / Semi-finished goods : At cost or market value whichever is lower

Stores, spare parts : At cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS :

Transactions in foreign currency are accounted for in accordance with AS-11 issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund, as indicated by the L.I.C. is provided for by the Company as gratuity liability.

(iii) The leave salary payable in respect of encashable leave is provided for according to the service rule of the Company. Unavailed leave, which is not encashable during the continuance of service is not provided for.

8. ACCOUNTING FOR DUTY CREDIT SCRIPT UNDER FOCUS PRODUCT/VISHESH KRISHI UDYOG YOJNA AND STATUS HOLDER INCENTIVE SCRIPT :

Duty Credit Script under Focus Product/VKUY and Status Holder Incentive Script Schemes are normally consumed in payments of custom duty against imports made. Entries for such consumption is made in respective purchase account on the amount of custom duty adjusted. Entries for scripts transferred are accounted for on realised value. Duty Credit Script under Focus Product and Status Holder Incentive Script Scheme receivable at the end of accounting year is accounted on estimated realizable value.

9. CONTINGENT LIABILITIES :

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

10. SALES:

Sales include export sales whether made directly or through third parties.

11. The accounting policies have been consistently followed and there has been no significant change in such policies during the year.

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Mar 31, 2012

Not Available

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Mar 31, 2011

1. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS:-

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION:

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on single shift basis.

4. INVESTMENTS:

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited to the Profit & Loss Account. If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost is credited to the Profit & Loss Account.

5. INVENTORIES:

Basis of valuation

Raw Materials : At average cost

Finished / Semi-finished goods : At cost or market value whichever is lower

Stores, spare parts : At cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS :

Transactions in foreign currency are accounted for in accordance with AS-11 issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Company's contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund, as indicated by the LLC. is provided for by the Company as gratuity liability.

(iii) The leave salary payable in respect of encashable leave is provided for according to the service rule of the Company. Unavailed leave, which is not encashable during the continuance of service is not provided for.

8. ACCOUNTING FOR DUTY CREDIT SCRIPT UNDER FOCUS PRODUCT SCHEME:

Duty Credit Script under Focus Product Scheme are normally consumed in payments of custom duty against imports made. Entries for scripts transferred are accounted for on realised value. Duty Credit Script under Focus Product Scheme receivable at the end of accounting year is accounted on estimated realizable value.

9. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

10. SALES:

Sales include export sales whether made directly or through third parties.

11. The accounting policies have been consistently followed and there has been no significant change in such policies during the year.

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Mar 31, 2010

1. BASIS OF ACCOUNTING:

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION:

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on single shift basis.

4- INVESTMENTS:

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for. Current Investments are valued at lower of cost or realizable value and any reduction in realizable value is debited to the Profit & Loss Account. If realizable value of current investment increases in subsequent years the increase in value of current investment to the level of the cost is credited to the Profit & Loss Account.

5. INVENTORIES:

Basis of valuation

Raw Materials : At average cost

Finished / Semi-finished goods : At cost or market value whichever is lower

Stores, spare parts : At cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS :

Transactions in foreign currency are accounted for in accordance with AS-tl issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expense in die year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Companys contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund, as indicated by the L.I.C. is provided for by the Company as gratuity liability.

(iii) The leave salary payable in respect of encashable leave is provided for according to the service rule of the Company. Unavailed leave, which is not encashable during the continuance of service is not provided for.

8. CONTINGENT LIABILITIES :

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

9. SALES:

Sales include export sales whether made directly or through third parties.

10. The accounting policies have been consistently followed and there has been no significant change in such policies during the year.

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Mar 31, 2001

1. BASIS OF ACCOUNTING :

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS :-

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATION:-

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on single shift basis.

4. INVESTMENTS :-

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for and short term Instruments are shown at market value as per As-13 issued by the Institute of Chartered Accountatnts of India.

5. INVENTORIES:-

Basis of valuation :

Raw materials : at average cost

Semi-finished goods : at cost or market value whichever is lower

Finished goods : at cost or market value whichever is ower

Stores, spare parts : at cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS :

Accounting for transactions in foreign currency, according to new AS-11 issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expenses in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Companys contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees of Varanasi Unit is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy are charged to Profit & Loss Account. The short fall in the Fund as indicated by the L.I.C. is provided for by the Company as gratuity liability. In respect of employees of Delhi Unit, gratuity is provided for on accrual basis.

8. CONTINGENT LIABILITIES;

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

9. SALES:

Sales includes export sales whether made directly or through third parties.

10. The accounting policies have been consistently followed and there has been no significant deviations in such policies during the year.

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Mar 31, 2000

1. BASIS OF ACCOUNTING :

The accounts have been prepared on the basis of historical cost convention and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting policies. The company generally follows the mercantile system of accounting recognizing both income and expenditure on accrual basis.

2. FIXED ASSETS :-

Fixed Assets are stated at cost of acquisition less depreciation.

3. DEPRECIATIQN:-

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on single shift basis.

4. INVESTMENTS:-

Long Term Investments are shown at cost and fluctuations in the market price of quoted shares are not provided for.

5. INVENTORIES:-

Basis of valuation :

Raw materials : at average cost

Semi-finished goods : at cost or market value whichever is lower

Finished goods : at cost or market value whichever is ower

Stores, spare parts : at cost and in appropriate cases charged to manufacturing expenses in the year of purchase.

6. FOREIGN CURRENCY TRANSACTIONS :

Accounting for transactions in foreign currency, according to new AS-11 issued by the Institute of Chartered Accountants of India. Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of the transactions. Monetary items denominated in a foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year end and the difference arising on account of variation in exchange rate is recognized as income or expenses in the year in which they arise. Non-monetary items denominated in foreign currency are carried at the exchange rate in force at the date of the transaction.

7. RETIREMENT BENEFITS:

(i) Companys contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees of Varanasi Unit is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy are charged to Profit & Loss Account. The short fall in the Fund as indicated by the L.I.C. is provided for by the Company as gratuity liability. In respect of employees of Delhi Unit, gratuity is provided for on accrual basis.

8. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts.

9. SALES:

Sales includes export sales whether made directly or through third parties.

10. The accounting policies have been consistently followed and there has been no significant deviations in such policies during the year.