| 1.01 Basis of preparation of Financial Statements :
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and the provision of the Companies Act, 2013.
1.02 Use of Estimate :
The preparation of financial statements requires estimates and
assumptions to be made that effects the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
1.03 Revenue Recognition :
a. Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
b. Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales revenue is net
of sales return.
c. Interest: Revenue is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable
d Dividends: Revenue is recognized as when received.
1.04 Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss, if any. The cost of an asset comprises of purchase
price and any directly attributable cost of bringing the assets to its
present condition for intended use
1.05 Depreciation :
Depreciation on the fixed assets has been provided for on
straight-line method at the rates prescribed and in the manner
specified in the Companies Act, 2013.
1.06 Inventories :
Inventories are measured at lower of cost or net realizable value. Raw
Material is valued at cost, Stores, Spares parts and packing material
valued as cost.
1.07 Investment:
Current Investments are measured at the lower of cost or market value.
Long Term Investments are measured at Cost.
1.08 Foreign Exchange Transaction :
a Transaction denominated in foreign currencies is normally recorded at
the exchange rate prevailing at the time of the transaction
b Monetary items denominated in foreign currency as at the balance
sheet date are translated at the yearend exchange rate.
c Premium on forward cover contracts in respect of import of raw
material is charged to Profit & loss account over the period of
contracts except in respect of liability for acquiring fixed assets,
in which case the difference are adjusted in carrying cost of the same.
1.09 Employee Retirement Benefits
The company provides for gratuity, a defined benefit plan in
accordance with the rules of the company based on valuation carried out
by the management at the balance sheet date. Contribution payable to
the Employees benefits is charged to Profit & Loss Account on as &
when incurred.
1.10 Borrowing Costs:
Borrowing cost which are directly attributable to the
acquisition/construction of Qualifying Assets are capitalized 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 charged to revenue.
1.11 Leases:
Assets acquired under leases where a significant portion of the risks
and rewards of ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the Profit & Loss
account on accrual basis.
1.12 Earnings per share:
Basic EPS is computed using the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the
weighted average number of equity and diluted equity equivalent shares
outstanding during the year except where the results would be
anti-dilutive
1.13 Current Tax and Deferred Tax :
No Provision for current tax is made, as company incurred business loss
during the year. The Company unable to follow, the Accounting standard,
for provision for Deferred Tax, as the Company incurred huge amount of
business loss.
1.14 Intangible Assets :
Intangible assets are capitalized if specific criteria are met and are
amortized over their useful life, generally not exceeding 5 years. The
recoverable amount of an intangible asset that is not available for use
or is being amortized over a period exceeding 5 years should be
reviewed at least at each financial year end even if there is no
indication that the asset is impaired.
1.15 Provision, Contingent Liabilities and contingent assets :
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
1.16 Impairment of Assets :
The company assesses at each balance sheet date whether there is any
indication that an assets may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the asset belong is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. If at the balance sheet date there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciated historical cost
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