ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Suryodaya Allo-Metal Powders Ltd.

1. The Company follows the Mercantile system of accounting.

(a) (I) The financial statements have been prepared in accordance with generally accepted accounting principles and provisions of The Companies Act, 1956 as adopted consistently by the Company.

(II) The Company follows the Mercantile system of accounting Sale of goods is recognized at the time of transfer of property therein, such sale being accounted for exclusively of excise duty and sales tax.

(b) Depreciation on fixed assets have not provided. As per information given by the fixed assets are acquired by the central bank no documents available for verification.

(c) Investment : Investments are stated at cost.

(d) Inventory :

I. Finished goods, trading products At cost ore net realizable value And work in process (including intermediary whichever is lower )

II. Stores spares, consumable and raw At cost on FIFO basis( inclusive

Materials of customs duty where applicable)

(a) Foreign currency transactions Not Applicable

(b) Employees benefits ( including retirement)

Normal retirement benefits under approved schemes are provided for in the following manner :

(c) Leave encashment As per company's policies

(d) Share issue expenses incurred prior to April 1996 and other deferred revenue expenditure are being written off over a period of 6 years.