Desh Rakshak Aushdhalaya Ltd. कंपली की लेखा नीति

Mar 31, 2025

1 .A. SYSTEM OF ACCOUNTING

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Indian Accounting Standards notified with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The company follows the mercantile system of accounting and recognize Income and Expenditure on an accrual basis except in case of significant uncertainties. The Accounting policies applied by the company are consistent with those used in the previous year. The financial statement are prepared to comply in all material respects with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognized upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 13515861- capital work in progress during the FY 2012-13 and it has been increased by Rs. 10142000/- during the FY 2015-16. Total amount Rs. 23657861- shown under this head. However a sum of Rs. 50.00 lacs has been utilized in Building at Bhogpur account during the FY 2024-25. Now a sum of Rs. 18657861- is pending for its utilization.

Bank Interest Rs. 2902308- paid on term loan and on working capital loan during the year.

Depreciation has been provided on fixed assets as per the guidelines of the Companies Act 2013 on the basis of life of the assets uses at SLM.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. Investment Rs. 5.00 lacs has been done in the company Sanskar Ayush Medicare Pvt. Ltd. during the financial year 2021-22.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales - G.Profit Margin

d. stores and spares At cost

6. SALES

There is no Export Sales of the company during the year.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

c. Provident Fund contributions Rs. 98438/-, ESI Rs. 11326-, TDS Rs. 189925- are payable as on 31.3.2025.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

The company have a book profit of Rs. 5647209- as per P&L Account. After add back of depreciation, the taxable income comes Rs. 3366612- on which Income Tax calculated @ 25% plus surcharge @ 4% which comes Rs. 867519- which is lower side.

Book profit of the company is 5647209- on which MAT is calculated @ 15% which comes Rs. 847081-. And cess @ 4% comes Rs. 33883- Total MAT comes to Rs. 880965- against which an Advance Tax Rs. 535000- and TDS/TCS Rs. 95079- has already been deposited and rest Rs. 250886- has to be deposited for which the provision has been made under the head Provision.

NOTES TO THE ACCOUNTS

Additional information pursuant to the provisions of paragraph 3 & 4 [c] [d] of part II of schedule VI of the Companies Act, 1956.

1.	LICENCED AND INSTALLED CAPACITY
a.	Licensed Capacity	Tablet, Syrup, Powder, Awaleha etc.
b.	Installed capacity	Tablet 2050 lacs Nos.
		Liquid 41 lacs bottles
		Pills 27.50 lacs Nos.
		Awaleha 280 Tones
		Kwach 40 Tones
		Capsules 60 lacs Nos.
2.	PARTICULARS OF OPENING & CLOSING STOCK & SALES
	Opening stock	Rs. 3002870.00
	Closing stock	Rs. 1943357.00
	Sales	Rs. 62706562.00
	Note: Since the number of items of raw materials and finished goods are more than one thousand, hence quantitative details are not given.

3. DETAILS OF RAW MATERIAL CONSUMPTION

As the number of raw materials are more than one thousand and none of them amount to reasonable parts of total consumption, no item wise details of raw material consumption in quantity has been given.

4. MANAGERIAL REMUNERATION PAID/PAYABLE DURING YEAR

a. Managing Director Tosh Kr.Jain Rs. 2403000/-

b. Director Monika Jain Rs. 600000/-

c. Director Arihant Jain Rs. 360000/-

5. A interest free Short Term loan of Ganga Corporation Pvt.Ltd. Rs. 100000- is outstanding during the financial year 2024-2025.

6. Confirmation of balances of Sundry Debtors and Sundry Creditors appearing under the heads current liabilities, current assets, capital work in progress and loans & advances are still awaited except few parties.

7. Particular of Auditors remuneration -

Audit Fee Rs. 100000/-

8. Sundry Debtors / Creditors includes various amounts which are more than 45 days old and no confirmation of the outstanding amount are available. Figures has been taken in such heads as per the confirmation of the management of the co.

The classification of creditors as micro and small enterprise has been given for the parties from whom the confirmation has been received regarding their classification as per MSMED Act. There is no interest on delayed payment to such parties, if any, has neither been determined nor has been paid as per verbal mutual understanding with the such parties.

9. There is no previous losses in the company. The company has profit during the year on which Income Tax/MAT has to be deposited as per the computation of Income Tax.

10. EARNING PER SHARE Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the numbers of equity shares outstanding during the year.

11. BUSINESS INFORMATION

Based on the analysis of the company’s internal organization and management structure, the management of the company has classified its business activities as “Manufacturing & processing of Ayurvedic, Medicines Ayurvedic composit drug kits, dye kits & CHW kits”. The company has not done manufacturing on job work basis during this year under audit.

12. DEFERRED TAX LIABILITY

Difference of Depreciation as per the Companies Act & as per I. Tax Act, has been add back in the net profit of the company and then Tax has been calculated.

13. EXPENDITURES ON EMPLOYEE

Break up of expenditure incurred on employees who were employed throughout financial year and were in receipt of remuneration aggregating to net less than Rs. 60,00,000/- per annum or if employed for a part of financial year were in receipts of remuneration aggregating to net less than Rs. 500,000/- per month.

PARTICULARS		CURRENT YR.	PREVIOUS YR.
a.	Salaries & Allowances	NIL	NIL
	Including perquisites
b.	Contribution to Provident Fund	NIL	NIL
	Superannuation & Gratuity Fund
c.	Number of Employees	NIL	NIL

14. The company has taken Cash Credit Limit of Rs. 225.00 lacs from Axis Bank & availed Rs. 209.94 lacs approximately with interest during the year against the hypothecation of all type of stocks and personal guarantee of the Directors. The company also has taken term loan from Axis Bank Rs. 262.00 lacs for its new project which comes in production during the financial year 2022-23 at Bhogpur and now the balance of term loan is Rs. 74.22 lacs during the FY 2024-25.

15. There has been no prior period or extra-ordinary item of income or expenditure which has been entered in the books of accounts during the year.

16. The company has received intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, following disclosures under the said Act have been shown as.

	31.3.2025 31.3.2024
(a) The principal amount due thereon remaining unpaid to supplier more than

45 days as at the end of accounting year. The details are as under:	10 Nos. NIL
Bharat Book Depot, Saharanpur	77226-
Bhargava Printer, Haridwar	139806-
Chauhan Industries, Haridwar	48192-
D.B.M (India) Haridwar	46390-
Girdhar Industries, Haridwar	91474-
Nityam Industries, Haridwar	66139-
R.K. Dispo Packs, Haridwar	23600-
S.R.Packaging	50002-
R.K. Industries, Haridwar	110530-
Matins Tech Pack Haridwar	90529-
TOTAL AMOUNT (b) The amount of interest paid by the buyer in term Of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 along with The amount of the payment made to supplier Beyond the appointed day during each	743888
Accounting year. © The amount of interest due and payable for the Period of delay in making payment (which has been Paid but beyond the appointed day during the year) But without adding the interest specified under the Micro, Small and Medium Enterprises Development	NIL NIL
Act, 2006.	NIL NIL

(d)The amount of interest accrued and remaining Unpaid at the end of each accounting year and,	NIL	NIL
(e) The amount of further interest remaining due And payable even in the succeeding years, until such date when the interest due as above are actually paid to the small enterprises under section 23 of Micro and Medium Enterprises Development Act 2006.	NIL	NIL

17. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

18 . Notes 1 to 18 form integral part of Balance Sheet and Profit & Loss account and have been duly annexed.

---

Mar 31, 2024

1. A. SYSTEM OF ACCOUNTING

These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) including the Indian Accounting Standards
notified with the Accounting Standards notified under Section 133 of the Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions
of the Companies Act, 2013. The company follows the mercantile system of accounting and
recognize Income and Expenditure on an accrual basis except in case of significant
uncertainties. The Accounting policies applied by the company are consistent with those
used in the previous year. The financial statement are prepared to comply in all material
respects with the mandatory accounting standards issued by The Institute of Chartered
Accountants of India and the relevant provisions of the Companies Act, 2013.

B. The accounts of the company have been prepared based on the going concern concept and
the company is operating at a low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognized upon passage of title to the
customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION
FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises
purchase price and any directly attributable cost of bringing the assets to its present
condition or intended use.

The fixed assets includes a sum of Rs. 13515861- capital work in progress during the FY
2012-13 and it has been increased by Rs. 10142000/- during the FY 2015-16. Total amount
Rs. 23657861- shown under this head. However it has not been finalized so far.

Bank Interest Rs. 3469843- paid on term loan and on working capital loan during the year.

DEPRECIATION

Depreciation has been provided on fixed assets as per the guidelines of the Companies Act
2013 on the basis of life of the assets uses at SLM.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. Investment Rs. 5.00 lacs has been done in the company Sanskar Ayush Medicare Pvt. Ltd.
during the financial year 2021-22.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales - G.Profit Margin

d. stores and spares At cost

6. SALES

The company has done an export sales of Rs. 2046300- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

c. Provident Fund contributions Rs. 100917/-, ESI Rs. 12826-, TDS Rs. 190520- are payable
as on 31.3.2024.

d. Accounting policies not specifically referred to are consistent with generally accepted
accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

---

Mar 31, 2015

L .A. SYSTEM OF ACCOUNTING

The company follows the mercantile system of accounting and recognize Income and Expenditure on an accrual basis except in case of significant uncertainties. The Accounting policies applied by the company are consistent with those used in the previous year. The financial statement are prepared to comply in all material respects with. the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies' Act, 2013.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance. .

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 13535861- capital work in progress.

DEPRECIATION

Depreciation has been provided on WDV method at the rates prescribed in Schedule XIV of the Companies Act, 2013 on usage basis. Additions to fixed assets during the year are being depreciated on pro-rata basis on put to use basis at the rates prescribed in the schedule XIV of the Companies Act, 2013. Depreciation on opening Balance plus addition from April to Sept, has been taken full rate and on the addition made from October to March, the depreciation has been charged at half rate on the basis of life of the assets.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 11.75 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales - G.Profit Margin

d. stores and spares At cost

7. SALES

The company has done an export sales of Rs. 5951252- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

c. Provident Fund contributions Rs. 93827/-, ESI Rs. 19300-, Vat Rs. 174556- TDS Rs. 138122- arc payable as on 31.3.2015.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

e. A sum of Rs. 708832/- has been deposited to the Commissioner of Provident Fund as fine towards late deposit of Provident Fund.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit of Rs. 807572- as per P&L account on which Income. Tax works out Rs. 494501 after add - back of depreciation. The company has deposited a sum of Rs. 708832- as fine on Provident Fund which will be add in the profit of the company which Income Tax Works out Rs. 219029- In this way Total Income Tax works out Rs. 713530- against which the company has deposit Rs. 591149- as Advance Tax & TDS, Hence a sum of Rs. 122381- has to be paid to Income Tax.

---

Mar 31, 2014

1 .A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861 - work in progress.

DEPRECIATION

a. Depreciation has been provided on WDV method at the rates prescibed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

6. INVENTORIES BASIS OF VALUATION

INVENTORIES

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales- G.Profit Margin

d. stores and spares At cost

7. SALES

The company has done an export sales ofRs. 5672920/- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provident Fund contributions Rs. 83444/- and ESI Rs. 18926/-, Vat Rs. 97016-TDS

Rs. 118267 are payable as on 31.3.2014.

d. Accounting policies not specifically referred to are consistent with generally accepted'' accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit of Rs. 1196480- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation.

---

Mar 31, 2013

1 .A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861-work in progress.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales ofRs. 3496577/- to Nepal country.

8 RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provider Fund contributions Rs. 149672/- and ESI Rs. 32978/- are payable as on 31.3.2013.

d. Accounting policies not specifically referred to are consistent with generally accepted'' accounting practices.

10 PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11 PROVISION FOR TAXATION

The company have profit ofRs. 354394- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation..

---

Mar 31, 2012

1.A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861- work in progress during the FY 2011-12 and Rs. 2154999]-was for the FY 2010-11..

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs, 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales ofRs. 5622753/- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid. .

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provident Fund contributions Rs. 283036/- and ESI Rs. 15963/- are payable as on 31.3.2012.

d. Accounting policies not specifically referred to are consistent with generally accepted' accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit ofRs. 342057- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation.

---

Mar 31, 2010

1A SYSTEM OF ACCOUNTING

The company follows the mercantile system of accounting and recognises income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern con- cept and the company is operating at a very low capacity utilisation level.

2 REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon pas- sage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 17496990- upto last financial year and Rs. 8053001- during the FY 2009-10 (Total amount Rs. 25549991- shown under the head of work in progress and pending since a long time for adjustments.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4 TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acqui- sition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

6 INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales-G.Profit Margin

d. stores and spares At cost

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales of Rs. 2852785/- to the different countries.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of old Gratuity Rs. 328062/- has been shown in the Balance Sheet during the year.

C. Provident Fund contributions Rs. 62103/- and ESI Rs. 15101/- are payable as on 31.3.2010.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11 PROVISION FOR TAXATION

Since the company have old loss of Rs. 1561037- as per Income Tax Return but during the year after adjustment, the company will pay Income Tax as per separate calculation..

TDS Rs. 149137/-, VAT UK Rs, 43081/-VAT UP State Rs. 53679-, and CST Rs. 75557/ - are payable during the year.

---

Mar 31, 2009

1 SYSTEM OF ACCOUNTING

The company follows the merchantile system of accounting and recognizes Income and Expenditure on an accrual basis except in case of significant uncertainties. B The accounts of the company have been prepared based on the going concern concept and the company is operating at a very low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognized upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use

The fixed assets includes a sum of Rs. 17496990/- shown under the head of work in progress and pending sinece a long time for adjustments and also there is an addition of Rs. 7996405/- during the year, which included in above figures.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the companies Act, 1956 as amended vide Notification No. 756 [E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorate basis from the date of such additions.

4 TECHNICAL KNOW- HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMEN

I nvestment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the share are not quoted in any exchange and also of the companies where most of the directors are common.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b Work- in-progress At cost

c Finished goods Sales-G. Profit Margin

d Stores and spares At cost

Store and spares purchased are charged to profit & Loss account in the year of purchase as the quantum is not material

7 SALES

The company has done an export sales of Rs 6751275/- To the different countries.

8 RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9 RETIREMENT BENEFITS

a Retirement benefits are accounted for as and when paid

b Provision of old Grativity Rs. 472415/- has been shown in the Balance sheet & there is no provision during the year.

c. Provident Fund cc ntnbutions Rs. 54205/- and ESI Rs. 13258/- are payable as on 31 3.2009. d Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10 PROPOSED DIVIDEND

No Dividend declared during the year.

11. PROVISION FOR TAXATION

Since the company have old losses hence no provision for Income tax is made. However, MAT has to be deposited TDS Rs. 102142/- and VAT Rs. 10765/- are payable during the year.