| (A) Basis of preparation of financial statements :
(i) The financial statements have been prepared under the historical
cost convention and accrual basis in accordance with the generally
accepted accounting principles and provisions of the Companies Act,
1956 as adopted consistently by the Company.
(ii) Accounting policies not specifically referred to otherwise be
consistent with generally accepted accounting principles followed by
the Company.
(B) i) Tangible Assets are stated at cost of acquisition less
accumulated depreciation and impairment loss (if any). Cost of
acquisition includes the purchase price, duties (net of Cenvat), taxes,
incidental expenses and erection / commissioning expenses which are
directly attributable in bringing the asset to its working condition
for the intended use.
ii) Intangible Assets are stated at cost of acquisition.
Depreciation
Depreciation on tangible assets is provided on Straight line method on
the basis of useful life of the assets and in the manner prescribed in
Schedule II to the Companies Act, 2013.
(D) Impairment of Assets
An asset is treated as impaired when carrying cost of the asset exceeds
its recoverable amount. An impairment loss, if any, is charged To the
Profit and Loss Account in the year in which an asset is identified us
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of the recoverable
amount.
(E) Investments:
(i) Long Term Investments are carried at cost after deducting
provisions, where the fall in market value has been considered as other
than temporary in nature.
(ii) Current Investments are valued at lower of cost or market value.
(F) Valuation of inventories:
Raw materials, stores & spares, W1P and finished goods are valued at
cost or net realizable value, whichever is lower. Cost is determined on
FIFO Basis.
(F) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(G) Sales
Sales are net off sales tax. Revenue from sales is recognized at the
point of receipt by the customers when the risk and reward stands
transferred to the customers,
(H) Provisions. Contingent Liabilities & Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes to the accounts. Contingent Asset is neither recognized nor
disclosed in the financial statements.
(I) Taxes on Income
Current Tax is determined as the tax payable in respect of taxable
income for the year.
Provision is made for Deferred tax for all timing differences arising
between taxable incomes and accounting income at currently enacted or
substantively enacted lax sale.
Deferred Tax assets are recognized, only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet dale.
(J) Employee Benefits
Effective from financial year 2007-08, the company adopted Accounting
Standard (AS) 15 (Revised 2005) dealing with Employee Benefits, issued
by the Institute of Chartered Accountants of India. The Company has
defined benefit plans for gratuity to eligible employees. The Company
dose not have policy of carry forward of the compensated absence to the
employees,
(K) Foreign Currency Translations
All transactions in foreign currency, are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place. Monetary assets and liabilities in foreign currency, outstanding
at the close of the year, are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of the Balance
Sheet, Resultant gain or loss, except to the expend it relates to Long
Term monetary items, is recognized in the Statement of Profit and Loss
for the year Gain or loss relating to Long Term foreign currency
monetary items for financing acquisition of depreciable capital assets,
is adjusted to the acquisition cost of such asset and depreciated over
its remaining useful life.
(L) Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for the events, such as bonus
share, other than conversion of potential equity share, that have
changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating, diluted earnings per share, the net
profile or Joss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of ail dilutive potential equity shares.
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