Note 2 Material Accounting Policies
A. Basis of Preparation of Financial Statements
The Balance Sheet and Profit & Loss account as on March 31, 2026 and the annexure thereto have been extracted by the
management on the basis of going concern.
The Financial Statements have been prepared on a going concern basis, in as much as the management neither intends
to liquidate the company nor to cease operations. Accordingly, assets, liabilities, income and expenses are recorded on a
Going Concern basis. Based on the nature of products and services, and the time between the acquisition of assets and
realization in cash or cash equivalents, the company has ascertained its operating cycle as 12 months for the purposes
of current and non-current classification of assets and liabilities.
B. Use of Estimates
The preparation of financial statements required the management to make estimates and assumptions that affect the
reported balance of assets and liabilities, revenues and expenses and disclosures relating to contingent liabilities. The
Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.
Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the
current and future periods.
C. Property, Plant and Equipment
Fixed assets are stated at historical costless accumulated depreciation and impairment losses. Cost includes purchase
price and all other attributable cost to bring the assets to its working condition for the intended use. Fixed assets have
been recorded in the books of the Company at WDV as per Income tax Act, 1961. Subsequent expenditures related to
an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset
beyond its previously assessed standard of performance.
D. Depreciation
Depreciation on tangible assets is provided on written down value method over the useful life of assets as prescribed
under Part C of Schedule II of the Companies Act, 2013. Depreciation for assets purchased/sold during a period is
proportionately charged. Intangible assets are amortised over their respective individual estimated useful lives on
written down value method, commencing from the date the asset is available to the company for its use.
E. Borrowing Cost
Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost
of the respective asset. All other borrowing costs are expensed in the period they occur.
F. Inventories
i) Raw Material, Packaging Material, Tools and Consumables, and Finished Goods are valued at lower of Cost or net
realizable value.
ii) Work in Progress at various level is valued at lower of cost or net realizable value. The Management estimates the
work in progress according to stage of completion. Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads incurred in bringing them to their respective present location and
condition.
G. Revenue Recognition
i) 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.
ii) Revenue from sale of goods is recognized when the significant risk and rewards are transferred as per the terms of
sale. Revenues are recorded at invoice value.
iii) Income in respect of interest, insurance claims, export benefits, subsidy etc. is recognized to the extent the company
is reasonably certain of its ultimate realization.
H. Employee Benefit
Defined-contribution plans:
i) The company does not carry forward the balance of earned leave balance of employees, balance earned leave is paid
to the employees according to the policy of company.
ii) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to
the Statement of Profit & Loss for the year.
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