NOTES FORMiNG PART OF ACCOUNTS
a) Basis of preparation and presentation of financial statements
i) The financial statements have been prepared under the historical cost concept and in accordance with Generally Accepted Accounting Policies, the mandatory Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and relevant provisions of Companies Act, 2013, as adopted consistently by the Company.
ii) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
iii) All inventories and stores & spares are valued at cost or net
realizable value whichever is lower.
The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standards (‘Ind AS'), including the rules notified under the relevant provisions of the Companies' Act, 2013.
Upto the year ended 31st March 2017, the Company has prepared its financial statements in accordance with the requirements of Indian Generally Accepted Accounting Principles (GAAP), which includes Standard notified under the Companies (Accounting Standards) Rules, 2006 and considered as “Previous GGAP”.
ADOPTiON OF iNDiAN ACCOUNTiNG STANDARD (IND AS):
Pursuant to the notification of the Companies (Indian Accounting Standard) Rules, 2015 by the Ministry of Corporate Affairs (MCA) on 16 February 2015, the company has adopted IND AS (Indian Accounting standards) from the financial year 2017-18.
These Financial Statements are the Company's first Ind As Standalone Financial Statement.
b) USE OF ESTiMATES
The preparation of financial statements requires the management to make judgements, estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates in the future period.
c) REVENUE RECOGNiTiON
Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sale of products is recognized when the significant risk and reward of ownership of the goods have been passed to the buyer. Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. As there is no export during the year under review the Company has not made any provision as receivables such as Duty Drawback and other schemes.
d) property, plant and equipment
Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any, except free hold land which is carried at cost less impairment losses if any. The cost comprises
purchase prices, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent expenditure relating to an item of fixed asset is added to its book value only if it increases the future benefits from the asset beyond its previous assessed standard of performance. All other expenses on fixed assets, including day-today repair and maintenance expenditure and cost of replacing parts are charged to the statement of profit and loss for the period as and when they occur.
e) Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method at the rates prescribed in Schedule II of the Companies Act, 2013 except Plant & Machinery based on useful life ascertained for such asset. Gains or losses arising from disposal of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of such assets are recognized in the statement of profit and loss.
f) employment benefits
Short Term Obligations
Short term employee benefits viz., salaries and wages are recognised as expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered. post employment OBLIGATIONS
• PROVIDENT FUND
Provident Fund is a defined contribution scheme and the contributions are recognised as expenses in the Profit & Loss Account for the year in which the employees have rendered services. The company contributes to provident fund administered by the Government on a monthly basis at 12% of employee's basic salary. There are no other obligation other than the above defined contribution plan.
• GRATUITY
Gratuity is a defined benefit retirement plan. The Company contributes to the Scheme with Life Insurance Corporation of India based on actuarial valuation done by them as at the close of the financial year.
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