1 Significant Accouting Policies
i) Basis of Preparation of Financial Statements
The financial statements have been prepared in conformity
with the generally accepted accounting principles in India
to comply with all material respects with the notified
Accounting Standards under Section 133 of the Companies
Act, 2013. The financial statements have been prepared
under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied
by the Company and are consistent with those used in the
previous year except for the change in accounting policies
explained below. The complete financial statements have
been prepared along with all disclosures
ii) Use of Estimates
The preparation of financial statements requires
estimates and assumptions to be made that affect the
reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues
and expenses during the reporting period. Difference
between the actual results and estimates are recognised
in the period in which the results are known/materialised.
iii) Revenue Recognition
Revenue is recognised only when it can be reliably
measured and it is reasonable to expect ultimate
collection. The aboslute figures on the face of Financial
Statements with respect to outward and inward supply
is exclusive of all applicable taxes if any. Interest income
on deposits and income bearing securities is recognized
on time proportionate method. Rental Income has been
recognized on time proportionate method over a period of
12 months.
iv) Property, Plant & Equipment
Property, Plant & Equipment are stated at cost net of
GST and includes amounts added on revaluation, less
accumulated depreciation and impairment loss if any. All
costs, including financing costs till commencement of
commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange
rate variations attributable to the Property, Plant &
Equipmentss are capitalised. Each part of an item of
property, plant & equipment with a cost that is significant
in relation to the total cost of the item is depreciated
seperately.
v) Depreciation
Depreciation on Property, Plant & Equipment is provided
to the extent of depreciable amount on Written Down value
(WDV) method in the manner prescribed in Schedule II to
the Companies Act, 2013 over their useful life.
vi) Impairment of Assets
An asset is treated as impaired when the carrying cost
of asset exceeds its recoverable value. An impairment of
loss is charged to the Profit & Loss Account in the year in
which an asset is identified as impaired. The impairment
loss recognised in the prior accounting period is reversed
if there has been a change in the estimate of recoverable
value.
vii) Foreign Currency transactions
(a) Transactions denominated in foreign currencies are
recorded at the exchange rate prevailing on the date
of the transaction or that approximates the actual
rate at the date of transaction.
(b) Monetary items denominated in foreign currencies at
the year end are restated at year end rates. In case
of items which are covered by forward exchange
contracts, the difference between the year end rate
and the rate on the date of the contract is recognised
as exchange difference and the premium paid on
forward contracts is recognised over the life of the
contract.
(c) Non monetary foreign currency items are carried at
cost.
(d) Any income or expense on account of exchange
difference either on settlement or on translation
is recognised in the Profit and Loss account except
in case of long term liabilities, where they relate to
acquisition of Property, Plant & Equipmentss, in
which case they are adjusted to the carrying cost of
such assets.
viii) Borrowing costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready
for its intended use. All other borrowing costs are charged
to Profit and Loss account.
ix) Taxation
Provision for Current tax is based on the liability computed
in accordance with the relevant tax rates and tax laws.
Provision for Deferred tax is made for timing differences
arising between are taxable income and accounting
income computed at the rates enacted or substantively
enacted by the balance sheet date. Deferred tax assets
are recognised only if there is a reasonable/ virtual
certainty that they will be realised and are reviewed for
the appropriateness of their respective carrying values at
each balance sheet date.
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