| A. Significant Accounting Policies :
i. Basis of Accounting
The Company follows the Mercantile System of accounting and recognises
Income and Expenditure on Accrual Basis. Th e financial statement are
prepared under the historical cost convention and are In accordance
with the requirements of the Companies Act, 2013 and accepted
accounting principles.
ii- Fixed Assets and Depreciation
Fixed as sets are stated at cost, less accumulated
depreciation/amortisatlon. Costs Include all expenses Incurred to bring
the assets to Its present location and condition. Fixed assets exclude
computers and other assets individually costing 5000 or less which are
not capitalised except when they are part of a larger capital
Investment programme. All Fixed Assets are stated at Historical Cost
Less Depreciation.
Depreciation / Amortization In respect of fixed assets (other than
freehold land and capital work-ln-progress) acquired during the period,
depreciation/ amortization is charged on a straight line basis so as to
write off the cost of the assets over the useful lives and for the
assets acquired prior to April 1, 2014, the carrying amount as on April
1. 2014 is depreciated over the remaining useful life as per the
requirements of Schedule - II of the Companies Act 2013.
Type of asset Poriod
Buildings 60 years
Plant and machinery 15 years
Computer equipment 3 years
Vehicles 8years
Office equipment 5 years
Eloctrical installations 10 years
Furniture and fixtures 5 years
iii. Taxes on Income
a. Current tax is the amount of tax payable on the estimated taxable
Income for the Current year as per the provisions of Income Tax Act.
1961.
b. Deferred tax asaets/lltibilitles is provided on significant timing
differences arising from the different treatments in accounting and
taxation of relevant item. Deferred tax assets/ liabilities shall be
reviewed as at each Balance Sheet date, based on development during the
year, to reassess realization/ liabilities.
c. Deferred Tax Assets in respect of accumulated Loss and unabsorbod
Depreciation are recognized and carried forward only if there is
virtual certainty of its realization.
IVt Contingent Liabilities
Contingent Liabilities are not provided for in the Accounts
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