A. Significant Accounting Policies
1. Basis of accounting:-
These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) including the Accounting Standards notified
under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on
accrual basis.
2. Revenue Recognition :-
Expenses and Income considered payable and receivable respectively are accounted for on
accrual basis except discount claims, rebates and retirement benefits which cannot be
determined with certainty during the year.
3. Fixed Assets :-
Fixed assets are stated at their original cost of acquisition including taxes, freight and other
incidental expenses related to acquisition and installation of the concerned assets less
depreciation till date.
4. Depreciation :-
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method/SLM method. Depreciation is provided based on useful life of
the assets as prescribed in Schedule II to the Companies Act, 2013.
5. Investments :-
Investments are stated at cost.
6. Inventories :-
Inventories are valued as under:-
1. Inventories : Lower of cost or net realizable value
2. Scrap : At net realizable value.
7. Miscellaneous Expenditure:-
Miscellaneous Expenditure comprises of Preliminary expenses that are amortized over a
period of five years
8. Retirement Benefits:-
The retirement benefits are accounted for as and when liability becomes due for payment.
9. Excise Duty:-
Excise duty is charged on ad-valorem basis and is accounted for when the goods are
cleared from factory site.
10. Taxes on Income:-
The effect of Accounting Standard - 22 relating to accounting for taxes on income issued by
the Institute of Chartered Accountants of India is not being considered as there is no timing
difference between book and taxable profits under the head ‘Income from Business or
Profession’ of the assessee.
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