Accounting Policies of Dujohn Laboratories Ltd. Company

Mar 31, 2010

A) The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) The accounts have been prepared on a going concern basis notwithstanding the fact that net worth of the company is in negative. The company follow mercantitle system of Accounting, except that provision is not made for interest payable on unsecured loans and not provided the interest on secured loans from lending banks- Central Bank of India, Indore during the year.

c) Investments

The securities acquired with the intention of holding till maturity or for a longer period are classified as investments.

d) Fixed Assets and Depreciation

(a) Fixed assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for intended use.

(b) Depreciation on fixed assets is provided on SLM Method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

No Provision for Depreciation has been made during the year due to loss to the company.

e) Deferred Tax & Income Tax

No provision for income tax has been made because of losses to the company. However, the company has unabsorbed depreciation and unabsorbed losses to set off. In view of uncertainty regarding taxable profit in future, no deferred tax assets or liability recognised on account of regarding Accounting Standard 22 - Taxes on Income.