1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
The accounting principles and policies, recognized as appropriate for the measurement and reporting of the financial
performance and financial position on accrual basis except as otherwise disclosed, using historical costs (i.e. not taking into
account changing money values impact of inflation) are applied in the preparation of the financial statements and those
which are considered materials to the affairs are suitably disclosed. The financial statements are in accordance with the
requirements of the companies Act, 2013.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles ('GAAP') in India
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities on the date of the financial statements, and the reported amount of revenue and expenses
during the reporting period. The estimates and assumptions used in the accompanying financial statements are based upon
management's evaluation of the relevant facts and circumstances as of the date of the financial statements which in
management's opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the
accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future
periods.
3. CURRENT/NON CURRENT CLASSIFICATIONS
The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current. An asset is
classified as current when it satisfies any of the following criteria:
It is expected to be realized in, or is intended for sale or consumption in, the entity's normal operating cycle;
It is held primarily for the purpose of being traded;
It is expected to be realized within twelve months after the balance sheet date; or
It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the balance sheet date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
It is expected to be settled in, the entity's normal operating cycle;
It is held primarily for the purpose of being traded;
It is due to be settled within twelve months after the balance sheet date; or
The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the
balance sheet date.
Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non¬
current.
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.
4.INVENTORIES
Companies measures its inventories at lower of the cost or net realizable value. Stock in trade computed on the basis of
cost of purchases (exclusive of taxes), and other cost incurred for bringing the inventories to the present location and
condition.
5. CASH & CASH EQUIVALENTS
Cash comprises Cash on hand and Demand Deposits with Banks. Cash equivalent are short-term balances (with an original
maturity of three month or less from the date of acquisition), highly liquid investments that are readily convertible into
known amounts of cash and which are subject to insignificant risk of changes in value.
6. PROPERTY, PLANT AND EQUIPMENT & INTANGIBLES
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost
comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly
attributable to the acquisition/ construction are included in the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
7. DEPRECIATION ON TANGIBLE FIXED ASSETS
The company depreciates Property, Plant and Equipment on Written down value method. Depreciation is provided based
on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on addition/deletion from
fixed assets made during the period is provided on Pro-rata basis from or up to the date of such addition/ deletion as the
case may be.
8. REVENUE RECOGNITION
Sales of goods:
Revenue is recognized to the extent that it is probable to the economic benefits will flow to the Company and revenue can
be reliably measured at the fair value of consideration received or receivable, as reflected in relevant documents taking into
account contractually defined terms of payments and excluding Taxes and Duties. Sales are recognized on Net, Return or
Trade discounts, on transfer of significant risks and rewards of ownership to the buyers which generally coincides with the
delivery of goods to the customers.
Other Income:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under head "other income" in the statement of profit and loss.
9. BORROWING COST
Borrowing costs attributable to the acquisition or construction of a qualifying asset 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 recognized as an expense in the period in which they are incurred. Capitalization of borrowing
costs is suspended during the extended period in which active development is interrupted. Capitalization of borrowing
costs is ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are
complete. Other borrowing costs are charged to statement of profit and loss as and when incurred.
10. ACCOUNTING TAXES ON INCOME
Tax Expenses for the year, i.e. Current tax is included in determining the net profit for the year. A provision is made for
the Current tax-liability computed in accordance with relevant tax rates and tax laws.
11. DEFERRED TAX-ASSET/LIABILITY
As per the Prudence concept, Deferred Tax Assets are recognized and carried forward only to the extent that there is
reasonable certainty of their realization. However considering past record of the company and by making realistic estimates
of profit for the future, its prudence we are not recognizing differed Assets as on date. However, the same will be
recognized as and when there is realistic estimates of the Profits.
12.IMPAIRMENT OF ASSETS
In accordance with AS 28 on 'Impairment of assets' as prescribed in the Companies (Accounting Standards) Rules, 2006,
the Company assesses at each balance sheet date, whether there is any indication that an asset may be impaired. If any such
indication exists, the Company estimates the recoverable amount of the asset.
The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is
estimated as the higher of its net selling price and its value in use. Value in use is the present value of estimated future cash
flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life.
An impairment loss is recognized whenever the carrying amount of an asset or the cash-generating unit to which it belongs,
exceeds it recoverable amount. Impairment loss is recognized in the statement of profit and loss or against revaluation
surplus, where applicable. If at the balance sheet date, there is an indication that a previously assessed impairment loss no
longer exists, the recoverable amount is re-assessed and the asset is reflected at the recoverable amount subject to a
maximum of the depreciated historical cost.
13.INVESTMENTS
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the statement of profit and loss. However, during the current year, Company does not have any current investments.
14. EMPLOYEE BENEFITS
Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of
the year in which the related services is rendered.
Post - employment and other long term employee benefits are recognized as an expense in the profit & loss account of the
year in which the liabilities are crystalized.
15. FOREIGN CURRENCY TRANSLATION
Initial recognition:
Foreign currency transactions are recorded in the reporting currency which is Indian Rupee, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Conversion:
Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year-end
at the closing exchange rate and the resultant exchange differences are recognized in the Statement of Profit and Loss. Non¬
monetary foreign currency items are carried at cost.
Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting monetary items of the Company at rates
different from those at which they were initially recorded during the year, or reported in previous financial statements, are
recognized as income or as expenses in the year in which they arise.
16.SEGMENT ACCOUNTING
(i) Business Segment:
The Company operates in one Business Segment only and hence no separate information for business segment wise
disclosure is required.
(ii) Geographical Segment:
The Company operates in one Geographical Segment namely "within India" and hence no separate information for
geographic segment wise disclosure is required.
17. EARNINGS PER SHARE:
Basic earnings per share are computed by dividing the net profit for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
18. CASH FLOW:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities
of the Company are segregated, accordingly.
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