(a) Use of Estimates:
The preparation of financial statements in conformity with Indian GAAP requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
liabilities at the end of the reporting period and the reported amounts of revenue and expenses during the reported
period. Although these estimates are based on management's best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the
Carrying amounts of Assets or Liabilities in future periods.
(b) Property, Plant & Equipment and Intangible Assets:
Property, Plant and Equipment is stated at acquisition cost net of accumulated depreciation and accumulated
impairment losses, if any. Cost of acquisition or construction of property, plant and equipment comprises its purchase
price including import duties and non-refundable purchase taxes after deducting trade discounts, rebates and any
directly attributable cost of bringing the item to its working condition for its intended use.
Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the company and the cost of the
item can be measured reliably. All other repairs and maintenance cost are charged to the statement of profit and loss
during the period in which they are incurred.
Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net disposal
proceeds and the carrying value of property, plant and equipment and are recognised in the statement of profit and
loss when the same is derecognised.
Depreciation is calculated on pro rata basis on Written Down value basis based on life assigned to each asset in
accordance with Part C of Schedule - II of the Companies Act, 2013 or as per life estimated by the Management.
(c) Revenue Recognition:
The company generally follows the mercantile system of accounting and recognizes Income & Expenditure on accrual
basis.
Revenue is recognised to the extent that it is possible that, the economic benefits will flow to the company and the
revenue can be reliably estimated and collectability is reasonably assured.
Revenue from sale of goods and services are recognised when control of the products being sold is transferred to our
customer and when there are no longer any unfulfilled obligations. The performance obligations in our contracts are
fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Revenue is measured on the basis of sale price, after deduction of any trade discounts, volume rebates and any taxes
or duties collected on behalf of the Government such as goods and service tax etc. Accumulated experience is used to
estimate the provision for such discounts and rebates. Revenue is only recognised to the extent that it is highly
probable a significant reversal will not occur.
(d) Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the higher of the asset's net selling price and value in use, which is
determined by the present value of the estimated future cash flows.
(e) Investments:
Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.
On initial recognition, all investments are measured at cost. The cost comprises price and directly attributable
acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of Investments.
On disposal of investment, the difference between its carrying amount and net disposal proceeds are charged or
credited to the statement of profit and loss.
(f) Inventories:
Inventories consisting of Raw Materials, W-I-P and Finished Goods are valued at lower of cost and net realizable
value unless otherwise stated. Cost of inventories comprises of material cost on FIFO basis and expenses incurred in
bringing the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and estimated costs necessary to make the sale.
(g) Employee Benefits:
Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the provident
fund is charged to the statement of profit and loss for the year when an employee renders the related services.
(h) Taxation:
Tax expenses comprises of current and deferred tax.
Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with
the applicable tax rates and tax laws.
Deferred Tax Assets or Deferred Tax Liability is recognized on timing difference being the difference between taxable
incomes and accounting income. Deferred Tax Assets or Deferred Tax Liability is measured using the tax rates and tax
laws that have been enacted or substantively enacted at the Balance Sheet date. Deferred Tax Assets arising from
timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in future.
(i) Borrowing Cost:
Borrowing Cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost
of the respective asset. All other borrowing costs are expensed in the period they occur.
(j) Segment Reporting:
The Company is engaged in the manufacturing of protective gears which are manufactured by using coated fabric as
the raw material. Considering the nature of Business and Financial Reporting of the Company, the Company is
operating in only one Segment. Hence segment reporting is not applicable.
The Company activities / operations are confined to India and as such there is only one geographical segment.
Accordingly, the figures appearing in these financial statements relate to the Company's single geographical segment.
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