SIGNIFICANT ACCOUNTING POLICIES:
a. Basis of Preparation
The accounts have been prepared in accordance with IND AS and Disclosures thereon comply with
requirements of IND AS, stipulations contained in Schedule- III (revised) as applicable under Section
133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, Companies
(Indian Accounting Standards) Rules 2015 as amended from time to time, other pronouncement of
ICAI, provisions of the Companies Act and Rules and guidelines issued by SEBI as applicable. 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 revised Schedule - III to the Companies Act, 2013.
b. Use of Estimates
IND AS enjoins management to make estimates and assumptions related to financial statements, that
affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining
to the year. Actual result may differ from such estimates. Any revision in accounting estimates is
recognized prospectively in the period of change and material revision, including its impact on
financial statements, is reported in the notes to accounts in the year of incorporation of revision.
c. Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred
to the buyer as per the terms of the contract and are recognised net of trade discounts/allowance,
sales return and sales taxes/value added tax.
d. Inventories
Inventories are valued at Cost or Net Realisable Value whichever is lower. Net realisable value is the
estimated selling price in the ordinary course of business less the estimated costs necessary to make
the sale. Provision is made for obsolete/slow moving/defective stocks, wherever necessary. Provision
is made for obsolete/slow moving/defective stocks, wherever necessary.
e. Investments
Investments that are readily realisable and are intended to be held for not more than one year from the
date, on which such investments are made, are classified as current investments. All other investments
are classified under Non-Current Assts as long-term investments. Current investments are carried at
cost or fair value, whichever is lower. Long term investments are carried at cost. However, provision
for diminution is made to recognise a decline, other than temporary, in the value of the investments,
such reduction being determined and made for each investment individually.
f. Fixed Assets & Depreciation
i. Tangible Fixed Assets are stated at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises of purchase cost, borrowing costs
if capitalisation criteria are met and other directly attributable cost of bringing the assets to its
working conditions for intended use. The cost also comprises of exchange differences arising on
translation settlement of long-term foreign currency monetary items pertaining to acquisition of
such depreciable assets. Any trade discounts and rebates are deducted in arriving at the purchase
price.
ii. The Depreciation is provided on Straight Line Method in accordance with Schedule II of the
Companies Act, 2013.
g. Taxation
Tax expense comprises current and deferred tax.
Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance
with the Income tax Act, 1961.
Deferred Tax reflect the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences of earlier years. As at the balance
sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business losses
are only recognised to the extent that there are deferred tax liabilities offsetting them.
Minimum Alternative Tax credit is recognised as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period. Such
asset is reviewed at each Balance Sheet date and the carrying amount of the Mat credit asset is
written down to the extent there is no longer convincing evidence to the effect that the Company will
pay normal income tax during the year.
h. Employee Benefits
Short term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in
which employee services are rendered.
Contribution towards provident fund for certain employees is made to the regulatory authorities,
where the Company has no further obligations. Such benefits are classified as defined contribution
schemes as the Company does not carry any further obligations, apart from the contributions made
on a monthly basis.
The Company provides gratuity, a defined benefit plan (the 'Gratuity Plan') covering eligible employees
in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a yearly contribution
to Group Gratuity Scheme to vested employees at retirement, death, incapacitation or termination
of employment, of an amount based on respective employee's salary and the tenure of employment.
Contributions to the Central Government administered Employees' State Insurance Scheme for
eligible employees is recognised as a charge in the Statement of Profit and Loss in the year in which
they arise
i. Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, demand deposits with banks, other short term
highly liquid investments with original maturities of three months or less.
j. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
Earnings considered in ascertaining the Company's earnings per share is the net profit/(loss) for the
period after deducting preference dividends if any and any attributable tax thereto for the period.
The weighted average number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the conversion of potential equity
shares that have changed the number of equity shares outstanding, without a corresponding change
in resources.
For the purpose of calculating diluted earnings per share, the net profit/(loss) for the period
attributable to equity shareholders and the weighted average number of equity shares outstanding
during the period is adjusted for the effects of all dilutive potential equity shares.
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