II. SIGNIFICANT ACCOUNTING POLICIES:
This note provides a list of the significant accounting
policies adopted in the preparation of these financial
statements. These policies have been consistently
applied to all the periods presented, unless
otherwise stated.
11.1 Basis of Preparation:
(i) Compliance with Ind AS
This financial statements comply in all
material aspects with Indian Accounting
Standards (Ind. AS) notified under Section
133 of the Companies Act, 2013 (the Act)
Companies (Indian Accounting Standard)
Rules. 2015 and other reliant provision of
the Act.
(ii) Historical cost convention
The financial statements have been prepared
on an accrual basis and under the historical
cost convention.
(iii) Classification of asset and liabilities
The classification of assets and liabilities
into current and non-current, wherever
applicable, are based on normal operating
cycles of business activities of the Company,
which is twelve months.
11.2 Summary of significant Accounting Policies:
a) Property, plant and Equipment:
Freehold land is carried at historical cost. All
other items of Property, plant and equipment
are shown at cost, less accumulated
depreciation and impairment, if any. The cost
of an item of property, plant and equipment
comprises its cost of acquisition inclusive
of inward freight, import duties, and other
non refundable taxes or levies and any
cost directly attributable to the acquisition/
construction of those items: any trade
discounts and rebates are deducted in
arriving at the cost of acquisition.
Subsequent costs are included in the asset's
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated
with the item will flow to the entity and the
cost of the item can be measure reliably. All
other repairs and maintenance are charged
to statements of profit or loss during the
reporting period in which they are incurred.
b) Depreciation on tangible fixed assets.
Depreciation on tangible fixed assets is
provided using the Written down value
Method as per rate prescribed by Companies
Act.
c) Revenue Recognition:
Revenue is measured at the fair value of
the consideration received or receivable.
Gross Sales are Net of returns, Claims, and
Discount. The Company recognises Revenue
when amount of revenue can be measured
reliably and it is probable that the economic
benefits associated with transaction will flow
to the entity.
Interest Income is accounted on accrual
basis and Fixed deposit interest is accounted
as per statement/documents issued by bank.
d) Inventories
Inventories are valued as follows:
a) Stock of Raw : At Purchase
Material & Stores price plus Direct
Expenses
b) Stock of work in : At Estimated cost
Progress price
c) Stock of Finished : At cost or net
Goods realisable value
whichever is less
e) Insurance and other claims
Revenue in respect of claims is recognised
when no significant uncertainty exists with
regard to the amount to be realised and
ultimate collection thereof.
f) Tax Expenses
Current income tax is measured at the
amount expected to be paid to the income tax
authorities in accordance with the income-tax
Act, 1961 enacted in India. Deferred Income
tax assets and liabilities are measured using
tax rates and tax laws that have been enacted
or substantively enacted by the Balance
Sheet date and are expected to apply to
taxable income in the years in which those
temporary differences are expected to be
recovered or settled. The effect of changes in
tax rates on deferred income tax assets and
liabilities is recognised as income or expense
in the period that includes the enactment or
the substantive enactment date. A deferred
income tax assets is recognised to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can
be utilised. The Company offsets current
tax assets and current tax liabilities where it
has a legally enforceable right to set-off the
recognised amounts and where it intends
either to settle on a net basis or to realise the
assets and settle the liability simultaneously.
g) Earning per Share
Basic earnings per share is calculated by
dividing the net profit for the year attributable
to equity shareholders by the weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the period is adjusted for events of bonus
issue: bonus element in a rights issue to
existing shareholders: share split: and
reverse share split (consolidation of shares).
h) Impairment of assets
At each balance sheet date an assessment
is made whether any indication exists that
an assets has been impaired. If any such
indication exists, an impairment loss i.e the
amount by which the carrying amount of an
assets exceeds its recoverable amount is
provided in the books of accounts.
i) Borrowing Costs
Borrowing cost that is attributable to
acquisition or construction of a qualifying
asset is capitalised as part of cost of
such assets. Qualifying assets is one that
necessarily takes substantial period of time
to get ready for its intended use. All other
borrowing cost is recognised as expenses in
the period in which they are incurred.
j) Cash and Cash Equivalents
For the purpose of presentation in the
statement of cash flown, cash & cash
equivalents includes cash in hand, cash at
bank and demand deposits with banks with
an original maturity of three months or less
which are subject to an in significant risk of
change in value.
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