1. SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF PREPARATION OF STANDALONE FINANCIAL STATEMENTS
The Financial statements are prepared under historical cost convention on accrual basis of
accounting and on a going concern basis in compliance with all material aspects of applicable
accounting standards specified under Section 133 of Companies Act,
b. USE OF ESTIMATE
The preparation of the Financial statements in conformity with the Indian GAAP requires the
management to make judgements, estimates and assumptions that affect the reported
amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities,
at the end of reporting 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 amount of assets
or liabilities in future periods.
C. PROPERTY, PLANT & EQUIPMENT & INTANGIBLE ASSETS
(i) PROPERTY, PLANT & EQUIPMENT
All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other
incidental expenses incurred in relation to their acquisition and bringing the asset to its
intended use.
(ii) INTANGIBLE ASSETS
Intangible Assets are stated at acquisition cost, net of accumulated amortization and
accumulated impairment losses, if any.
d. DEPRECIATION AND AMORTISATION
i) Depreciation on PPE is calculated on a written down value method and the rates arrived at
based on the useful lives estimated by the management, or those prescribed under the
Schedule II to the Companies Act, 2013. Individual assets cost of which doesn't exceed Rs.
5,000/- each are depreciated in full in the year of purchase.
ii) Intangible assets including internally developed intangible assets are amortised over the
year for which the company expects the benefits to accrue.
d. DEPRECIATION AND AMORTISATION
i) Depreciation on PPE is calculated on a written down value method and the rates arrived at
based on the useful lives estimated by the management, or those prescribed under the
Schedule II to the Companies Act, 2013. Individual assets cost of which doesn't exceed Rs.
5,000/- each are depreciated in full in the year of purchase.
ii) Intangible assets including internally developed intangible assets are amortised over the
year for which the company expects the benefits to accrue.
e. INVENTORIES
Raw Material, Work in Progress, Finished Goods and Stock in Trade are valued at lower of cost
or net realisable value. Cost is computed on First in First out basis. Finished goods and work in
progress includes cost of material, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Provision is made for the cost of
obsolescence and other anticipated losses, wherever considered necessary.
Packing Material and Stores & Spares are valued at Cost including other cost incurred in
bringing the material to their present location.
f. IMPAIRMENT OF ASSETS
At the end of each reporting period, the Company reviews the carrying amounts of its tangible
assets, intangible assets and investments in subsidiaries, associates and joint ventures to
determine whether there is any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount, which is the higher of the value in use or
fair value less cost to sell, of the asset or cash- generating unit, as the case may be, is
estimated and impairment loss (if any) is recognised and the carrying amount is reduced to its
recoverable amount. In assessing the value in use, the estimated future cash flows are
discounted to their present value. When it is not possible to estimate the recoverable amount
of an individual asset, the Company estimates the recoverable amount of the cash-generating
unit to which the asset belongs. When an impairment loss subsequently reverses, the carrying
amount of the asset or a cash-generating unit is increased to the revised estimate of its
recoverable amount, so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the
asset (or cash-generating unit) earlier. Goodwill and other intangible assets not yet available
for use are tested for impairment at least annually, and whenever there is an indication that the
asset may be impaired
g. FOREIGN CURRENCY TRANSLATION
Transactions in foreign currencies i.e. other than the Company's functional currency of Indian
Rupees are recognised at the rates of exchange prevailing at the dates of the transactions. At the
end of each reporting period, monetary items denominated in foreign currencies are translated
at the functional currency using exchange rates prevailing at that date. Non-monetary items
measured at fair value that are denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value is determined. Non- monetary items that are measured
in terms of historical cost in a foreign currency are not retranslated. Exchange differences on
monetary items are recognised in profit or loss in the period in which they arise except for
exchange differences on transactions entered into in order to hedge certain foreign currency
risks (refer policy on Derivative Financial Instruments and Hedge Accounting).
h. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or construction of qualifying
assets are capitalised 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 recognised in Statement of Profit and Loss in the period in which
they are incurred.
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