Accounting Policies of Shri Bhagavati Bright Bars Ltd. Company

Mar 31, 1998

(a) Accounting Convention

The financial statements presented herewith are prepared in accordance with the historical cost convention and on accrual basis.

(b) Fixed Assets and Depreciation

The Company has provided depreciation on Straight line method at the specified under schedule XIV of the companies act 1956 on pro-rata basis.

(c) Amortisation of Preliminary, Pre-Operative & Differed Revenue Expenses

1/10 of Preliminary & Pre-Operative Expenses are amortised during the year.

(d) Taxation

In absence of taxable profits, no provision for Income-tax has been made in accounts.

(e) Sundry debtors and Loans and Advances :

In the opinion of the board and to the best of their knowledge and belief the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the balance sheet. The provision for all known liabilities is adequate and neither in excess nor short of the amount reasonably necessary.

(f) Inventories :

Inventories on hand are carried at Direct Cost or Net Realisable value whichever is lower. Direct Cost Comprises Raw Materials, Direct wages, Consumables, Power and Fuel.

(g) Excise Duty :

1. Excise duty on goods manufactured laying in the factory premises are accounted as and when goods are dispatched.

2. Excise duty collected on sales has been included in sales.

3. Excise duty Receivable reflects net of Modvat Credit during the year as well as cash deposited in Personal Ledger Account during the year.

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Mar 31, 1997

The Company has adopted generally followed accounting policies which are consistent with the provisions of the Companies Act, 1956.

(a) Accounting Convention The financial statements presented herewith are prepared in accordance with the historical cost convention and on accrual basis.

(b) Fixed Assets and Depreciation The Company has provided depreciation on Straight line, line method at the specified under schedule XIV of the companies act 1956 on pro-rata basis.

(c) Amortisation of Preliminary, Pre-Operative & Differed Revenue Expenses

1/10 of Preliminary & Pre-Operative Expenses are amortised during the year.

(d) Taxation

In absence of taxable profits, no provision for Income-tax has been made in accounts.

(e) Sundry debtors and Loans and Advances

In the opinion of the board and to the best of their knowledge and belief the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the balance sheet. The provision for all known liabilities is adequate and neither in excess nor short of the amount reasonably necessary.

(f) Inventories

Inventories on hand are carried at direct Cost or Net Realisable Value whichever is lower. Direct Cost Comprises Raw Materials, Direct Wages, Consumables, Power & Fuel.

(g) Excise Duty

1. Excise duty on goods manufactured lying in the factory premises are accounted as and when goods are dispatched.

2. Excise duty collected on sales has been included in sales.

3. Excise duty Receivable reflects net of Modvat Credit during the year as well as cash deposited in Personal Ledger Account during the year.

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Mar 31, 1996

The Company has adopted generally followed accounting policies which are consistent with the provisions of the Companies Act, 1956.

(a) Accounting Convention

The financial statements presented herewith are prepared in accordance with the historical cost convention and on accrual basis.

(b) Fixed Assets and Depreciation

The Company has provided depreciation on Straight line method at the specified under schedule XIV of the companies act 1956 on pro-rata basis.

(c) Amortisation of Preliminary, Pre-Operative & Differed Revenue Expenses

1/10 of Preliminary & Pre-Operative & differed Revenue Expenses are amortised during the year.

(d) Taxation

In absence of taxable profits, no provision for Income-tax has been made in accounts.

(e) Sundry debtors and Loans and Advances

In the opinion of the board and to the best of their knowledge and belief the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the balance sheet. The provision for all known liabilities is adequate and neither in excess nor short of the amount reasonably necessary.

(f) Inventories

1. Raw Materials : At Cost

2. Finished goods : At lower of cost and net realisable value

3. Scrap : Net realisable value

(g) Excise Duty

1. Excise duty on goods manufactured lying in the factory premises are accounted as and when goods are dispatched.

2. Excise duty collected on sales has been included in sales.

3. Excise duty Receivable reflects net of Modvat Credit during the year as well as cash deposited in Personal Ledger Account during the year.