Significant Accounting Policies
i) Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost convention on
accrual basis. The financial statements have been prepared to comply in all material
respects with the mandatory Accounting standards issued by the Institute of Chartered
Accountants of India and relevant provisions of The Companies Act. 2013. The
accounting and reporting policies of the Company used in the preparation of these
financial statements confirms to Generally Accepted Accounting Principles in India
("Indian GAAP")
ii) Revenue Recognition
Revenue is recognised only when it can be reliably measured and it is reasonable to
expect ultimate collection. Revenue from operations includes sale of goods.
iii) Provisions
A provision is recognized when an enterprise has a present obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the
obligation in respect of which a reliable estimate can be made. Provisions are not
discounted to the present value and are determined on the basis of best management
estimate required to settle the obligation at the balance sheet date. These are further
reviewed at each balance sheet date and are adjusted to reflect the current best
management estimates.
iv) Estimates
The preparation of financial statements are in conformity with the generally accepted
accounting principles in India ( Indian GAAP) requires estimates and assumptions to be
made that affect the reported amount of assets and Liabilities on the date of financial
statements and the reported amount of revenues and expenses during the reporting
period. Difference between the actual result and estimates are recognized in the period
in which the results are known/ materialized.
v) Plant Machinery & Equipment's
Tangible assets
Fixed assets are carried at cost less accumulated depreciation and impairment (if any).
Cost comprises of the purchase price and any attributable cost of bringing the assets to
its working conditions for its intended use. The cost of internally constructed assets
includes cost directly related to their construction.
Depreciation
Depreciation on tangible assets is provided on written down value (WDV) at the rates and in the
manner prescribed In Schedule II of the Companies Act, 2013.
vi) Contingent Liabilities
Contingent Liabilities are generally not provided for in the accounts. However, there is no
Contingent Liability.
vii) Investments
The current investments are carried at lower of cost and quoted/fair value.
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