1. General Information
Gayatri Rubbers and Chemicals Limited , incorporated on March 31, 2022 is engaged in Manufacturing and
Trading of Rubber products. The Company is a public limited company listed on National Stock Exchange
(SME Platform) with its registered office in Faridabad, Haryana.
2. Summary of Significant Accounting Policies
2.1 Basis of Preparation
The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section
133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant
provisions of the Companies Act, 2013 (“the 2013 Act”). The financial statements have been prepared on
accrual basis under the historical cost convention.
2.2 Operating Cycle
Based on the nature of products / activities of the company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months
for the purpose of classification of its assets and liabilities as current and non-current.
2.3 Use of Estimates
The preparation of the financial statements in conformity with Indian GAAP requires the Management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) and the reported amounts of income and expenses during the year. The Management believes that the
estimates used in preparation of standalone financial statements are prudent and reasonable. Estimates and
underlying assumptions are reviewed at each balance sheet date.
Future results could differ due to these estimates and the differences between the actual results and estimates are
recognized in the periods in which the results are known/materialise.
2.4 Revenue Recognition
(i) Sale of Goods
Sales of goods are recognized on transfer of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
The company accounts for variable considerations like, volume discounts, rebates and pricing incentives to
customers as reduction of revenue on a systematic and rational basis.
Revenues are shown net of allowances/ returns, goods and services tax and applicable discounts and allowances.
(ii) Interest Income
Interest income is accrued on a time proportion basis, by reference to the principle outstanding and the effective
interest rate applicable.
2.5 Inventories
Finished goods are valued at the lower of cost (First in First Out -FIFO basis) and the net realisable value after
providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing
the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in¬
progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.
Raw Material is valued at cost (First in First Out -FIFO basis).
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