4. Material Accounting Policies
(i) Revenue Recognition
Revenue from the sale of goods and services are
measured at the fair value of the consideration received
or receivable, net of returns and allowances, trade
discounts, rebates and incentives etc. Sales figure are
recognized excluding Goods and Service Tax.
All Other income and expenditure items having a material
bearing on the standalone financial statements where
certainty of ultimate collection/payment exist, are
recognized on accrual basis.
(ii) Property, Plant & Equipment
Property, plant and equipment are stated at historical
cost/deemed cost (elected in accordance with Ind AS 101,
First time adoption of Indian Accounting Standards), as
applicable, less accumulated depreciation and cumulative
impairment losses, if any. Cost comprises of the purchase
price (net of GST / duty credits wherever applicable) and all
direct costs attributable to bringing the asset to its working
condition for intended use and includes the borrowing
costs for qualifying assets and the initial estimate of
restoration cost if the recognition criteria is met.
Wherever assets are revalued, Gross carrying amount is
adjusted by the amount added on revaluation based on
Govt. approved valuers' report and disclosed separately
as required under the Companies Act,2013. All other
repair and maintenance costs are recognised in the
statement of profit and loss as incurred. Software and
licences which are integral part of the PPE are capitalised
along with respective PPE.
An item of property, plant & equipment is de-recognised
upon disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss arising
on the disposal or retirement of an item of property, plant
and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset
and is recognised in the Statement of Profit and Loss on
the date of disposal or retirement.
Capital work-in-progress includes cost of property, plant
and equipment under installation / under development
as at the balance sheet date. Advances paid towards the
acquisition of property, plant and equipment outstanding
at each balance sheet date is classified as capital advances
under other non-current assets and the cost of Property,
Plant and Equipment not available for use before such
date are disclosed under 'Capital work-in-progress'.
(iii) Amortization and Depreciation
(a) During the year, depreciation has been provided
on Straight Line Method, as determined on the
basis of useful lives specified in Schedule II of the
Companies, Act, 2013.
(b) Depreciation on Plant & Machinery of Continous
production process including SMT, Plastic Extrusions
and Injection Molding Machines etc has been been
provided on Double Shift Basis.
(c) Property, plant and equipment (PPE) which are
added/ disposed- of during the year, depreciation is
provided on pro-rata basis from (up- to) the date on
which the PPE is available for use (disposed-off).
(d) Leasehold Land is re-classified with Right to Use
and amortized over the period of lease as per
the Ind AS-116.
(iv) Employee Benefits
Expenses and liabilities in respect of employee
benefits are recorded in accordance with Ind-AS 19 -
Employee Benefits.
(a) Defined contribution plan
Provident Fund & ESI Fund: Contribution to the
provident fund & ESI Fund with the government
at pre-determined rates is a defined contribution
scheme and is charged to the statement of Profit
and Loss. There are no other obligations other than
contribution to PF & ESI Schemes.
(b) Defined benefit plan
Gratuity : The Company provides for gratuity, a
defined benefit retirement plan ('the Gratuity Plan')
covering eligible employees. The Gratuity Plan
provides a lumpsum payment to vested employees
at retirement, death, or termination of employment,
of an amount based on the respective employee's
salary and the tenure of employment with the
Company. Provision for gratuity is made as per the
provision of payment of gratuity act, as calculated by
the independent actuary.
(c) Other Short-term employee benefits:
All employee benefits payable wholly within
twelve months rendering services are classified
as short term employee benefits. Benefits such as
salaries, wages, short-term compensated absences,
performance incentives etc. and the expected cost
of bonus, ex-gratia are recognised during the period
in which the employee renders related service.
Liabilities in respect of encashment of accumulated
leaves by the employees is estimated by the
management and charged to Profit & Loss account.
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