(a) Statement of Compliance
The financial statements of the Company have been prepared in accordance with the Indian Accounting
standards (‘Ind AS’), prescribed under section 133 including the rules notified under the relevant provisions
of the Companies Act, 2013.
(b) Basis of Preparation and Presentation
The financial statements have been prepared on the historical cost basis. Historical Cost is generally based on
the fair value of the consideration given in exchange for goods and services. All assets and liabilities have
been classified as current and non-current as per the Group’s normal operating cycle.
(c) Use of Estimates
The preparation of the financial statements is in conformity with Ind AS requires the Management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) and the reported income and expenses during the year. The Management believes that the
estimates used in preparation of the financial statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual results and the estimates are recognized in
the periods in which the results are known / materialize.
(d) Inventories
Inventories are valued as under: - Raw Materials, Packing Materials, Stores & Spares are valued at cost on
FIFO basis after making provision for obsolescence & un-serviceability. Finished Goods and Work in
Progress is recognized at lower of cost or net realizable value. Cost comprises Material cost, cost of
conversion, other expenses incurred to bring the inventories to their current condition and location.
(e) Property, plant, and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at
historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognized when replaced.
All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.
Transition to IndAS:
On transition to Ind AS, the company has elected to continue with the carrying value of all of its property,
plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying
value as the deemed cost of the property, plant and equipment.
Depreciation on property, plant and equipment is provided using straight line method. Depreciation is
provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement
of Profit and Loss when the asset is derecognized.
(f) Revenue Recognition
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated
reliably, there is no continuing effective control or managerial involvement with the goods, and the amount
of revenue can be measured reliably.
(g) Investments
Non-Current investments are stated at cost less provision for diminution in value, other than temporary.
Current investments are stated at the lower of cost and fair value.
(h) Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognized as an expense during the period when the employees render the
services.
A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident
Fund and Pension Scheme. The Company’s contribution is recognized as an expense in the Statement of
Profit and Loss during the period in which the employee renders the related service.
(i) Borrowing Costs
The borrowing costs incurred for construction of qualified asset is capitalized till the date the qualified asset
is first put to use. Other borrowing costs are recognized as an expense and charged to Profit & Loss Account.
(j) Earnings per Share
Basic earnings per share are computed by dividing the profit after tax by the number of equity shares
outstanding during the year. Since there are no dilutive potential equity shares, diluted earnings per share is
computed in the manner same as used for basic earnings per share.
(k) Taxes on Income
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit
and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In
which case, the tax is also recognized in other comprehensive income or equity.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet
date.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.
(l) Impairment of Assets
The carrying amounts of assets / cash generating units are reviewed at each Balance Sheet date to assess
whether there is any indication of impairment based on internal / external factors. After review of this year,
no impairment is recognized, as there was no necessity.
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