| (1) Revenue Recognition The Company follows the mercantile systems of
accounting and recognise all significant item of income and expenditure
on accrual basis except interest on advances to some of the parties
which will recognise on receipt basis.
(2) Miscellaneous Expenditure Preliminery Expenses, Miscellaneous
expenditure and Public issue expenditure are amortised on written down
value method. Pre-operative expenses are amortised over 10 years
equally.
(3) Valuation of Inventories
(1) Inventories are stated at cost price or market price whichever is
lower. However, as informed by the management whenever market value was
not available in respect of some shares, the same has been valued as
per valuation of last year.
(2) The Company has acquired shares for trading purpose and stock of
shares did not lodge with respective company for transfer in time
because company is not existing. However the stock of shares acquired
and held by the company, pending transfer is included as stock for
physical verification purposes.
(3) The company has reissued its forfeited snares during the previous
year at the discount of Rs. 0.23. The discount on issue of shares are
shown under the head Miscellaneous Expenditure.
(4) As explained by the directors of the company, there is a liability
in respect of unpaid call money of Maruti Infrastructure Limited,
considering the facts that if they would pay off the liabilities, the
realisation on sale of share would be lesser which eventually affect
the out-flow of funds for losses. However the company has not received
any notice of forfeiture of shares. Market value of shares has been
shown in inventory and liability for payment of unpaid call money shown
in the Balance sheet. No provision has been made for interest on
delayed payment of call money in books of accounts.
(5) The company has made advances for the purchase of land & machienery
during the earlier years, the same are doubtful of recovery. However,
management is hopeful of the recovery in view of the same. There is no
provision hart been made in the accounts for the same.
(6) DISPUTED LIABILITIES.
Income tax department has raised demand of Rs.14,77,376/- for the A.Y.
1997-98 and Rs. 12,81,259/- for A.Y. 1998-99 against the company. The
company has prefered appeal against the same demand. The company
expects that decision would be in favour of it. Hence no provision had
been made in the books of accounts by the company.
Taxe on Income :
As the effect of Accounting Standard-22 on accounting for taxes is
negligible, the same is not considered for the preparation and
presentation of financial statements.
Earning Per Share :
Shares at the bigining of the year Shares allotted in January, 2004.
Weightage average shares ((31165700*12/12)+(21457000*3/12)) Profit
During the year Earning Per share
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