1. Significant Accounting Policies and Notes on Accounts.
Accounting policies / compliance of Accounting Standards issued by the Institute of Chartered
Accountants of India.
(1) AS 1 : Disclosure on accounting policies
The financial statements have been prepared under the historical cost convention in accordance with
the generally accepted accounting principles in India and the provisions of the Companies Act, 2013
and in compliance with the applicable Accounting Standards referred as per Companies Act, 2013.
The accounts are maintained on accrual basis as a going concern.
All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle and other criteria set out in the Schedule III in the Companies Act, 2013. Based on the
nature of products and the time between the acquisition of assets for processing and their realization in
cash and cash equivalents, the Company has determined its operating cycle as twelve months for the
purpose of current & non current classification of assets and liabilities.
The preparation of financial statements requires estimates and assumptions to be made that affects the
reported amount of assets and liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reported period. Difference between the actual
results and estimates are recognized in the period in which the results are known / materialized.
(2) AS 2 : Valuation of Inventories
Cost of Inventory is generally ascertained on the weighted average basis.
(3) AS 3: Cash Flow Statements
Cash Flow Statement has been attached to the Balance Sheet and Profit and Loss Account.
(4) AS 4: Events occurring after balance sheet date:
There are no events occurring after the Balance Sheet date that require adjustment or disclosures.
(5) AS 5: Net Profit or Loss for the period, prior period items and changes in Accounting Policies:
There are no events occurring after the Balance Sheet date that require adjustment or disclosures.
(6) AS 6: Depreciation Accounting
Depreciation on fixed assets is provided on a straight line basis so as to charge the cost of the assets
over the useful life of the respective assets as prescribed under part C of schedule II of the companies
Act 2013. Residual value has been considered as 5% of the cost of the respective assets. Depreciation/
Amortization on assets added, sold or discarded during the year is provided on pro rata basis.
(7) AS 7: Accounting for Construction contracts
The above standard is not applicable to the Company as it is not engaged in the business of
construction.
(8) AS 8 : Accounting for Research Development
This standard has been withdrawn from 1-4-2003 consequent to the introduction of Accounting
Standard AS 26 on Accounting for intangible Assets becoming mandatory.
(9) AS 9: Revenue recognition
Revenue is recognized and expenditure is accounted for on their accrual. Interest and other costs in
connection with borrowing of funds to the extent related / attributed to the acquisition / construction
of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use.
Other borrowings costs are charged to Profit and Loss Accounts. During the year, the Company
amended its objects in Memorandum of Association and passed necessary resolutions.
(10) AS 10: Accounting for Fixed Assets.
a) Fixed Assets are stated at the values at which they are acquired, less accumulated depreciation. The
value at which fixed assets are acquired includes all related expenses up to the date of putting them
to use.
b) Cenvat Credit availed on acquisition of Fixed Assets is reduced from the cost of the concerned
assets.
c) The Fixed Assets of the company are insured against fire risks for the acquisition Value / market
value whichever applicable.
(11) AS 11: Accounting for effects in Foreign exchange rates.
The company export its trading to foreign countries. The cost or earnings are accounted on Net
Realisable value.
(12) AS 12: Accounting for Government grants.
The company has not received any grant from the Government during the year .
(13) AS 13: Accounting of Investments.
Current investments are valued at lower of cost and fair value.
(14) AS 14: Accounting for Amalgamations.
The above standard is not applicable as there was no amalgamation during the year.
(15) AS 15: Accounting for retirement benefit.
Leave encashment is at the discretion of the management and is charged off to revenue in the year of
payment. Accounting for Gratuity was made on Cash basis.
(16) AS 16: Borrowing cost.
Interests on borrowings to finance fixed assets are capitalized only if the borrowing costs are
attributable to the acquisition of fixed assets that take a substantial period of time to get ready for its
intended use. Expenditure incurred on alteration/temporary constructions is charged off as
expenditure under appropriate heads of expenditure in Profit and Loss account in the year in which it
is incurred.
(17) AS 17: Segment reporting
Since the company's business activity falls within a single business segment, there is no additional
disclosures to be provided under account standard 17-'segment reporting' other than those already
provided in the financial statements.
(18) AS 18: Related party disclosure:
There is no related party transactions during the year.
(19) AS 19: Leases.
There is no lease agreement between the company and others. Hence this standard is not applicable.
(20) AS 21: Consolidated financial statements.
The standard is not applicable since the company does not have Subsidiary company
(21) AS 22: Accounting for taxes on income.
Provision is made for income tax liability estimated to arise on the results for the year at the current
rate of tax in accordance with the Income Tax Act 1961.
In accordance with the Accounting Standard - 22, Accounting for Taxes on Income, issued by the
Institute of Chartered Accountants of India (ICAI), and effective from 1st April 2001 and in accordance
with the listing Agreements with the respective stock exchanges, the Company has recognized the
deferred tax liability in the accounts whereby:
1. The Net deferred tax Asset arising on account of timing differences at 31-03-2024 is Rs.52,130/-
2. Deferred Tax resulting from timing differences between book and tax profits is accounted for
under the Assets, at the current rate of tax.
3. Deferred tax assets / liabilities arising on account of brought forward losses and unabsorbed
depreciation are recognized only when there is virtual certainty supported by convincing evidence
that such assets will be realized. Deferred tax assets/liabilities arising on other temporary timing
differences are recognized only if there is a reasonable certainty of realization.
(22) AS 23: Accounting for investments in associates
The above standard is not applicable to this Company as there are no associates.
(23) AS 24: Discontinuing Operations.
The company has not discontinued any operations during the year.
(24) AS 25: Interim Financial Reporting
Since the company is a Public ltd Company quarterly financial results are sent to all Stock Exchanges.
(25) AS 26: Intangible Assets.
The company has not acquired any intangible assets during the year and hence the standard is not
applicable.
(26) AS 27: Financial Reporting of interests in joint ventures.
This standard is not applicable to this company.
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